Confidence or panic? Looking for a bounce
The global cryptocurrency market cap is $2.72 Trillion, a -8% change in the last 24 hours. Seems quite a dump.
What are ERC-20 holders doing in terms of sell offs? Are people aping out of the market? Are we seeing a lot of pain on people's onchain activity?
We'll take 5 'blue chips' from ERC-20 market segment: SHIB, YFI, UNI, AAVE and LINK.
We'll be looking for 'pain markers' in exchange inflow, deposits, age consumed, network profit/loss and whales behaviour.
1. Exchange Inflow
Generally we do not see any worries here within five selected coins. People seem to be very confident in their holdings. SHIB for example:
A declining trend of SHIB being deposited to exchanges is indicating that traders are not afraid of Shiba going down. They are not going to send tokens to exchanges to sell.
One outlier here is Uniswap:
Three increasing spikes might indicate people were looking to take profits just before the dump. But nothing similar after the dump itself.
2. Active deposits
Same here, no worries or minimal worries visible. Except for YFI:
An string of increasing upticks of deposits suggesting holders were looking to exit positions.
3. Network Profit Loss
Interesting that the picture here is completely the same again: almost no panic sells except in YFI:
4. Age Consumed
All five tokens do not have any significant outliers here. Likely no huge old bags moved or sold. It's looking like this on charts:
5. Whales behaviour
We want to have a look at supply distribution by balance of addresses holding from around $500K to $50M worth of tokens. Is it standing still (nothing special) or going down (whales offloading the bags). Here we can say that only one token from five is showing a downtrend in whales balances last day. It's LINK:
We do not see many signs of panic or sell offs within selected ERC-20 tokens. People don't seem to worry about the dump. It makes us suggest we might see a further correction until holders confidence wipes off.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.