• 26 May, 2024

Today, big whale transaction numbers are popping up on several altcoin networks. While this doesn’t necessarily mean a large-scale selloff is in progress, it does indicate that increased volatility is likely.

The biggest whales are likely creating some uncertainty in the market with their recent activity. We saw a similar pattern prior to February’s correction, which saw most major altcoins lose 10-20%.

Given that the market has been relatively flat for the last several weeks, it is not impossible to see another wave of selling begin before long. This can be especially true for altcoins that have seen a large run-up since the start of the year, such as HEX, BNB, TMG, and HT.

Ultimately, investors should keep an eye out for whale activity and watch how it affects the market. If we see more whales take flight from their positions, it could signify more extreme corrections and volatility.

Source: Coinmarketcap

LRC – Liquidity has been increasing steadily on the LRC network in recent weeks, and there are signs of big whale activity. This suggests that whales may accumulate their positions ahead of a potential price rise.

Source: Tradingview

AAVE – The number of large transactions has increased significantly in recent weeks, indicating that whales may be taking profits off the table.

Source: Tradingview

DYDX is seeing significant whale activity, with large transactions occurring over a short period. This could indicate either an accumulation or a distribution.

Source: Tradingview

CRV – Whale activity has been increasing on the CRV network recently. There is a possibility that whales may be accumulating their positions ahead of a potential price rise.

Given the increased whale activity on these altcoins, it’s important to stay vigilant and watch for any sudden changes in pricing or liquidity. As always, do your own research and only invest what you can afford to lose.

Conclusion

Altcoin whales can have a significant influence on the market. Therefore, it is important to keep an eye on whale activity and be aware of how it affects pricing and liquidity. Although the current activity has not been definitively linked to a sell-off, increased volatility could come from these big players moving money around.

Disclaimer:  Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. Always do your own research and never invest only what you can afford to lose.

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