Take a look at your crypto portfolio. How many of your assets are in the top 100? If the answer is “a lot”, there’s one stat you really should be tracking right now: whale transactions.
Call me Ishmael
According to an analysis by Santiment, whales went into a frenzy when they soared huge bills for the top 100 assets. Some cryptos even saw 2x the usual number of $100k+ whale trades – or more. These include Litecoin [LTC]Axie Infinity [AXS]Chiliz [CHZ]Link [COMP]Real USD [TUSD]and Synthetix [SNX]†
#cryptoThe top 100 assets continue to see massive whale transactions take place. Among the assets seeing at least TWICE the amount of $100k+ valued trades as usual include: $LTC† $AXS† $MKR† $CHZ† $COMP† $TUSDand $SNX† Get access to this model now. 😎 https://t.co/rF3isa71La pic.twitter.com/F4q1Qq4tAu
— Santiment (@santimentfeed) March 31, 2022
Why should an ordinary minnow worry about these changes when prices might not move as desired? Whale activity in the top tiers can sometimes indicate price shifts. Based on whether these trades are accompanied by a rally or a downtrend, we can guess whether whales are accumulating or making a profit.
For its part, Litecoin [LTC] traded at $130.09, after rallying 0.87% in the past day and up 6.07% in the past week. Although whales targeted LTC, the peak was significantly smaller than whale transactions for CHZ and SNX.
This may not sound remarkable, but one thing to note is that the DAA divergence of the adjusted price around press time revealed a long, bright red bar that suddenly flashed a very strong sell signal.
In addition, LTC volume has been on the rise since about March 26 and at the time of writing it had crossed the one billion LTC mark. This again confirms the increase in investor activity.
Not so light now?
At the other end of the spectrum, Axie Infinity was another cryptocurrency that enjoyed a lot of attention from whales [AXS]†
The play-to-earn NFT-based game’s Ronin bridge suffered an exploit worth over $600 million that helped it make headlines of the day. Santiment data, however, showed that whale transactions peaked in excess of $1 million even as news of the exploit broke. In addition, the number of AXS on exchanges fell. Taken together, this suggests that whales may have bought the dip.
What this means for the health of Axie Infinity as a long-term project, however, remains to be seen.
This post Litecoin, AXS: Insights From Watching The Whales Feeding On These Assets
was published first on https://ambcrypto.com/litecoin-axs-take-backs-from-watching-the-whales-feeding-on-these-assets/