The cryptocurrency Nano pumped in just 30 minutes and saw a 6,105% increase in volume over the last 24 hours, reaching around $37.87 million being traded quickly.
Nano’s acceleration phenomenon untangled.
The cryptocurrency Nano had pumped more than 170% on Binance yesterday, which kept many wondering what prompted this sudden price “pump”.
Firstly, Nano(XNO) is a local coin, which means it has a low market capitalization. Therefore, it will constantly experience significant price changes as a smaller amount of capital needs to come in or out to affect the unit price.
Secondly, market capitalization is a key factor that plays in this rise. Nano had reportedly moved 80 positions in market capitalisation rank in a few minutes on Coingecko. From rank #244 to #164.
Coingecko’s internal scoring and ranking system, which analyzes community data, coin tokenomics and other fundamental factors, put nano in position #33.
In a quick calculation, XNO at position #33 in the current market would put it in place of Filecoin (FIL), with a unit price of $10.66, which means a 795% move from the current price at $1.19.
A third key factor is a volume. Assets with low volume (low liquidity) tend to make aggressive price movements (up or down) when this volume increases sharply. During the 170% pump in 30 minutes, nano saw a 6,105% increase in volume over the last 24 hours, reaching around $37.87 million being traded in a short span of time.
Considering that XNO’s trading volume has been below $1M for the past few days, it’s only natural to see a relevant increase in price volatility, as seen this morning.
Nano 170% pump is no coincidence.
Some technical analysts, recognizing an Arbitrage pattern, predicted Nano’s recent pump.
A few hours before the Nano “pump” occurred on Binance, Binance’s nano node went offline. In this way, withdrawal and deposit operations were blocked during the night. When the pump eventually occurred, the market could not arbitrage XNO between exchanges – buying cheap on one to selling more expensive on another, thanks to the price difference.
This is a pattern of behaviour in these price pumps in moments of high accumulation and withdrawals from exchanges. More than ⅙ of all nano units moved from Binance wallets to private wallets on the 22nd of November, after which the node crash, the lockout of withdrawal and deposit operations and the price pump, followed.
In this way, the price pumped more aggressively on Binance, while the other exchanges like Litecoin and Dash followed the movement more timidly. This event created an opportunity for those who had nano deposited in the CZ company.
This article has been originally published at: https://crypto.news/low-cap-coin-nano-shoots-up-170-in-just-30-minutes/