- Whale transactions are showing up on altcoin networks of Loopring, AAVE, DYDX and CRV, signaling volatility in these assets.
- Experts believe high volume transactions by whales are red flags that imply extreme exits or redistribution of altcoin holdings.
- AAVE and Loopring prices suffered a decline after the spike in whale activity.
Altcoin prices rallied in January 2023, the best performing month for cryptocurrencies since October 2021. Whales have increased their activity in altcoins Loopring (LRC), Aave (AAVE), DYDX and Curve (CRV).
A spike in whale activities could indicate a sell-off or an increase in volatility among altcoins.
Also read: Why Bitcoin bulls are poised to win Friday’s $1 billion options expiry
Whale activity in altcoins raises red flags, here’s what it means for Loopring and AAVE
Altcoins rallied in the beginning of 2023, doubling their market capitalization and yielding massive gains for holders. Interestingly, large wallet investors have increased their activity in altcoins Loopring, Aave, DYDX and Curve. In these four altcoins, experts have noted the highest activity by whales.
While whale activity is typically correlated with a sell-off or redistribution of tokens, it is a red flag if the altcoin’s price drops. Loopring price yielded 113% gains for holders in the past month. Over the last 48 hours, the number of whale transactions exceeding $100,000 in value have exploded on the Loopring (LRC) network.
With the spike in whale transactions, LRC chart shows minor signs of correction. LRC price is down nearly 4% in the past 24 hours.
Whale transactions on Loopring v. price
Whale activity in Aave is not quite on the level of Loopring. After a 65% price rally in AAVE throughout January, there have three large whale transaction spikes over the past two weeks. The largest one coincided with a local top in AAVE price. Experts at crypto intelligence tracker Santiment consider this a red flag.
AAVE Whale transaction spike coincides with local price top
The largest spike in whale transactions on January 16 coincides with a local top in AAVE price as seen in the chart above.
Whale transaction spike on CRV indicates local price top
While Curve noted 128 whale transactions recently, this spike is not as high as the one seen in January. Despite that, experts believe on Curve, whale transaction spikes have consecutively coincided with short-term price tops four times in a row. This makes whale transaction spike a reliable indicator for a price top in CRV.
Whale transaction count in CRV (>$100,000)
On CRV, whales are known to take profits and exit local tops. An increase in activity by large wallet investors therefore helps traders decide whether to reallocate their portfolio holdings or accumulate more of the altcoin. In case of CRV, rise in whale transactions is an opportunity to take profits and exit before the dip.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength
Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.

Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook
Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.

Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing
Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.

200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?
Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.

Bitcoin: BTC consolidates before a big move
Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.