Railgun crypto pumps 30% after Vitalik Buterin’s transaction – What lies ahead?

• Railgun crypto pumped +30% on Vitalik Buterin’s $1.8M transaction. 
• The token was highly concentrated on a single address, raising manipulation risks. 

Railgun [RAIL] mooned 36% on Wednesday following a reported Vitalik Buterin transaction on the privacy pool and mixer.

The Ethereum [ETH] founder sent 693.9 ETH($1.83M) to the mixer, according to on-chain analysis by LookOnChain. 

Source: LookOnChain/X

Will Railgun crypto keep its gains?

This wasn’t Buterin’s first transaction on the mixer that keeps transactions private from nosy on-chain sleuths. He’s a frequent Railgun user and has openly backed the platform as a staunch regulated privacy advocate. 

That said, his recent transaction renewed interest in the platform’s native token. In the past two days, the altcoin surged over 40% and reclaimed the $1 value. 

Source: RAIL/USDT, TradingView

The daily chart RSI showed potential for more growth because it was away from the overbought territory. But the price action also tagged a key resistance since April, as shown by the yellow trendline. 

If bulls falter at the hurdle, RAIL could retrace back to the moving averages around $0.8, If so, this could be a buying opportunity for the potential rebound to $1. 

However, the next bullish target would be $1.2 if bulls blast above the overhead obstacle. 

Worth pointing out, however, that Bubblemaps’ visualization suggested highly centralized control of the RAIL token. 

Source: Bubblemaps snapshot via Gecko Terminal 

Notably, the address, Oxee6a, had a high transfer volume of 63.6%  and was connected to other larger wallets.

This implied a likely massive concentration to a single user or entity that could affect other retail holders should the said entity dump its holdings. 

Overall, RAIL could offer a new buying window if it retraces to $0.8, with a potential to retest $1 or zoom to $1.2-$1.4 area.

However, there appeared to be a high centralization risk worth tracking, especially for long-term holders. 

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion