Could Whales Cause an Auction Crash?
Bounce has experienced exponential growth in 2025, establishing itself as one of the top-performing cryptocurrencies in the market.
Over the preceding six weeks, Bounce (AUCTION) surged to a high of $67.55 — its peak since October 2021. This represents an increase of over 712% from its lowest point this year, boosting its market capitalization to exceed $380 million.
The rally has intensified as many retail investors succumbed to the fear of missing out (FOMO). According to Santiment data, the number of active addresses has skyrocketed, reaching 1,505 — a considerable rise from the fewer than 400 observed earlier this month.
Additional on-chain data suggests that this surge may be influenced by whale manipulation. The number of whale transactions exceeding $100k has surged to the highest level observed in months. Likewise, transactions surpassing $1 million have also increased significantly.
The growing volume of whale transactions might signal positive momentum, especially when these investors are accumulating assets. However, the Santiment data on whale transactions does not clarify whether these whales are buyers or sellers.
An assessment of the Mean Dollar Invested Age (MDIA) raises concerns about the coin’s future. The 365-day MDIA indicator plummeted from 112 earlier this month to 38.
Similarly, the 90-day MDIA has decreased from 33.4 to just 3. A decline in the MDIA indicator is typically a precursor to a significant price reversal for a token.
The potential for whale manipulation has heightened, as the recent price increases have not been accompanied by any significant news from Bounce Finance.
The latest announcement occurred on Friday when developers introduced the Bouncing Art Onchain, a product aimed at tokenizing real-world art.
Bounce token price analysis
The weekly chart indicates that the AUCTION token price rebounded from a low of $7.10 earlier this month to $67.54. It surpassed the critical resistance level of $48.95, its highest mark last December, and has also risen above the 50-week moving average.
Indicators suggest that it may have entered the markdown phase of the Wyckoff Theory. This phase is generally followed by distribution and subsequently a markdown, during which the asset’s value declines.
The AUCTION price has also reached overbought territory, as indicated by soaring Relative Strength Index and Stochastic Oscillator readings. Consequently, there is a risk of a significant correction in the upcoming days as it transitions into the distribution phase.