coinedition.com
Santiment, the crypto market analytics platform, has alerted on increased whale transactions across multiple altcoin networks. An analyst on Santiment, who goes by the name “brianq”, suggested that the development could signal increased volatility rather than a token dump.
🐳 Big whale transaction numbers are showing up on several #altcoin networks today. This doesn't necessarily mean a dump is in progress, but it does indicate that increased volatility is likely. Check out our insight covering $LRC, $AAVE, $DYDX, & $CRV. 👍 https://t.co/pxmEhyhfP5 pic.twitter.com/BzWiKne77z
— Santiment (@santimentfeed) February 3, 2023
The analyst posited that several altcoins benefitted from the crypto rally of January this year. While the market focused on Bitcoin as the flagship cryptocurrency, many altcoins registered significant price gains, with some doubling their value in less than 30 days.
Moreover, the analyst spotted a few altcoins with unusual whale behavior. These altcoins registered heavy transactions recently, having benefited immensely from the universal price surge in January.
The analyst called out Loopring (LRC), which gained 113% in January for extreme whale activity. Yesterday, Santiment captured 41 transactions with values exceeding $100,000 on the LRC network. Interestingly, the transactions after LRC experienced a minor price correction, meaning those transactions were not necessarily responsible for the temporary dump.
Furthermore, Aave (AAVE) registered 106 whale transactions on the same day, despite having yet to climb as high as LRC during the January rally. The identified whale transactions did not immediately impact the price of AAVE either. It was a similar scenario with DYDX, whose impressive 173% gain was rarely affected by 61 transactions over $100,000 counted on its network.
According to the analyst, the consistency of the identified whale transactions requires investors to pay more attention to the altcoin market. Although the development could imply a momentary profit-taking exercise, it may signal things to come. He noted that there could be more significant exits from the altcoin market in the coming days or weeks.