- 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
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.