Huge Individual Whale Transactions to Watch as Alts Attempt to Recover
There has been a whole lot of market bleeding ever since Bitcoin quickly took a nosedrive from $25k on February 21st. The past 30 days show a sea of red for all but a few assets:
But hunting for altcoins with massive whale moves during this kind of dip is a tried and true strategy we should be considering. And more specifically, finding these transactions that involve coins moving from exchanges into self-custody are probably the best signal of whale confidence we can have on our radars.
So let's look at a few through the lens of a brand new model that Santiment will soon be releasing:
There is a lot to unpack in this chart. But in short, we can see spikes based on whether the asset had a recent top 10 largest individual transaction based on the past 3 months of data. The higher the spike, the larger the transaction was (in USD).
The black area bar is the most important, because that means the transaction just happened today and has the best chance of price impact not already being "baked in". The small, skinnier bars represent days earlier this week, with the color of the bar corresponding to the legend at the top.
Bitcoin, on the left, has two transactions that are completely off the axis, thanks to some massive wallet moves to Coinbase and various new wallets by the Department of Justice earlier this week. Perhaps it's not a coincidence that markets really began dumping after the $666 million Bitcoin transaction was made on March 7th?
Regardless, let's take a look at some of the other altcoins that have been making a big splash as of just the past day. Those networks that don't have huge transactions from self-custody wallets to exchanges are the ones that are going to be the most intriguing.
MATIC is the most notable asset on the list, after a 58,885,143 MATIC ($62.1M) transaction was made today. Unfortunately, this appears to have been an exchange address moving coins to another exchange address, which generally isn't indicative of any positive price movement coming up. But it is possible. Usually, this kind of transfer reflects a whale selloff at worst, or a routine move to another exchange address at best.
With Aavegotchi being the 331st ranked market cap asset, it tends to see a lot of extreme swings, with whale transactions having a tremendous impact on its price. Today, GHST had an $8.2M single transfer from an exchange address to another exchange address as markets will falling. You can see that there was a series of major on-chain transaction volume right around the top on the 21st through 23rd. And this spike is the first one since. Perhaps it's indicating a bottom may be near?
Fantom has been taking quite the beating in March. And its latest big transaction was a $10.2M move within an exchange. So far, the price has plummeted after this massive funds transfer. But a little bit of time will be need to pass before just assuming that this was a huge sell-off, and not just a simple transfer to a new wallet.
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.
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