When volatility strikes, as it has in the negative direction over the past 3-4 days, many traders tend to display a phenomenon known as "freezing up". This behavior is exactly how it sounds - traders don't want to make a mistake and buy into a downswing or sell into an upswing.
However, whales of many altcoins tend to become much MORE active when prices begin to rollercoaster wildly as they have been as Bitcoin dipped to $53k this weekend.
Here are three assets we see with major whale numbers rising this past week, and conversely, falling:
⬆️ Increasing Number of Whale Address
Ren Protocol ($REN)
Band Protocol ($BAND)
⬇️ Decreasing Number of Whale Address
Network Realized Profit or Loss (NPL) calculates the overall ROI across all daily transactions for a crypto asset. Generally, spikes are what we look to avoid, as it implies increased chances of local tops and short-term price normalization.
So are we seeing major spikes to be worried about? Here's how NPL currently looks for some of crypto's biggest names:
Bitcoin hit its lowest NPL of the month yesterday, and is well below its 30d and 200d trendlines. A great sign that an imminent local top isn't approaching.
ETH is more neutral than BTC, sitting right between its 30d and 200d trendlines.
Chainlink is at a low for the month in NPL, and this coincides with a major address activity spike. Could be good here.
LTC's NPL is below the 30d and 200d trendlines and has been sitting encouragingly low for about 2 straight weeks now.