- SWELL crypto pumped 60% but failed to break above its downtrend.
- The altcoin recorded a strong accumulation since December.
Swell [SWELL], the native token of the latest liquid staking protocol on Ethereum [ETH], Swell Networks, exploded 60% on the 10th of February.
The move followed SWELL listing on new centralized exchanges, Bitget and Gate.io. At the time of writing, the coin’s Trading Volume has been up 200%, indicating strong traction amongst traders.
Unfortunately, the pump didn’t break above its downtrend channel formed in December. As a result, the altcoin faced rejection at $0.02 and erased part of the recent gains as of this writing.
Can it break the downtrend?
Source: SWELL/USDT, TradingView
Since topping $0.07 in December, SWELL has erased nearly 80% of its value. But this wasn’t surprising, as most altcoins shed 20-90% in the past few weeks amid Trump tariffs wars and inflation fears.
That said, the coin appeared to have found support around $0.01 in February. The latest 60% pump originated from this support, but achieving a solid recovery could remain elusive unless the downtrend breaks.
Simply put, the coin could drop lower to its $0.01 support or even lower to the mid-range level.
On the flip side, a decisive break above the downtrend could push SWELL to $0.027 or 0.035.
Strong SWELL accumulation trend
Source: Santiment
Interestingly, the coin saw steady accumulation even as the token declined by 80%. Over the past two months, over 100 million SWELL have been moved from exchanges. The Supply outside Exchanges (yellow) growth underscored this.
Over the same period, overall sell pressure declined. In fact, over the past few days, selling pressure from centralized exchange dipped further. This was shown by the red line (Supply on Exchanges).
This could partly explain why the coin formed a support at $0.01.
Read Swell [SWELL] Price Prediction 2025-2026
Despite the remarkable accumulation trend and easing supply pressure, there was one caveat with SWELL.
Per CoinMarketCap data, over 90% of the token was controlled by the top 10% holders. This meant that the token price could be easily manipulated by a few top holders.
Source: CoinMarketCap
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
