Shiba Inu, Sandbox, XRP and CAKE likely to rally as whales move during price dip
- Bitcoin, Ethereum and altcoins in the top 100 cryptocurrencies by market capitalization experienced price declines this week.
- Whales bought more Shiba Inu, Sandbox, XRP and CAKE, attempting to capitalize on discounted prices.
- Experts say SHIB, XRP, SAND and CAKE prices could rebound in the future as traders scoop these tokens during the dip.
There has been a spike in activity from large wallet investors – popularly known as whales – affecting several altcoins, particularly Shiba Inu (SHIB), Sandbox (SAND), XRP and Pancake Swap (CAKE), according to data from crypto intelligence tracker Santiment. These recent moves occur at a time when most of these assets are seeing significant price declines. Large wallet investor activity during a dip is considered bullish for crypto assets in the long term.
Whales make moves in SHIB, XRP, SAND and CAKE
During the recent dip in crypto markets, Bitcoin and Ethereum traders suffered mass liquidations, with more than $50 million in long positions being liquidated in a 24-hour time frame. Shiba Inu and several other altcoin prices dipped in response.
Amidst the price decline, whale activity picked up pace. Santiment analysts noted that large wallet investors are attempting to capitalize on discounted prices, with notable activity in four altcoins: SHIB, XRP, SAND and CAKE.
Whale transaction count vs prices in XRP
Whale transaction count vs prices in SHIB
Whale transaction count vs prices in SAND
Whale transactions vs price of CAKE
After the enthusiasm seen in June due to the applications for Bitcoin ETFs diminished, the market capitalization of the top 100 cryptocurrencies has gradually declined. This “bear market” phase appears to be an opportunity for large wallet investors, awaiting price dips for scooping up tokens at a discount.
Analysts at Santiment argue that major whale activity indicates there are likely rebounds if crypto prices stabilize again. Analysts state that In the current market cycle, large wallet investors are less likely to offload their holdings when prices decline between 20% and 30%.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
