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According to Santiment, a cryptocurrency analytics firm, the price of The Graph (GRT), an Ethereum (ETH)-based indexing protocol, has been negatively impacted by a significant entity.
Santiment reports that a large holder, likely a crypto exchange, recently sold off more than $55 million worth of GRT, leading to a decline in its price.
📉 #TheGraph has seen a mid-sized price direction after a multi-asset #whale disposed of $55.3M worth of $GRT, as picked up by @santimentfeed data. Pay attention to the #altcoins moving into self custody, and avoid those showing big inflows to exchanges. https://t.co/BvESKHHyK2 pic.twitter.com/gWnpSWKgjY
— Santiment (@santimentfeed) June 2, 2023
The firm highlights the importance of monitoring altcoins that are transitioning into self-custody and avoiding those experiencing substantial inflows to exchanges. Santiment reveals that the whale sold its GRT holdings at a price of $0.130, while the current trading value stands at $0.128.
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Santiment also observes that Ethereum is facing challenges in maintaining its price structure. ETH holders appear to be quick to secure profits, even after a relatively modest rally in the past week.
The firm suggests that a high proportion of traders holding onto their Ethereum would be ideal, and a decrease in this ratio could indicate a potential decline in ETH’s value towards $2,000.
🤑 #Ethereum is getting a large amount of profit taking transactions after a mild +5% price jump the past week. Typically, we want to see a lot of traders #hodling, and if this ratio comes down to earth, it would be a signal $ETH is on its way to $2,000. https://t.co/lQyVya3rqj pic.twitter.com/F2QvD5gpno
— Santiment (@santimentfeed) June 3, 2023
Regarding Bitcoin (BTC), Santiment speculates that the leading cryptocurrency, with the largest market capitalization, might experience a period of catching up with equities and other altcoins in the upcoming days.
This speculation is based on the recent news of the US government’s decision to raise the debt ceiling, which analysts have generally perceived as positive.
Santiment notes that the passing of the debt ceiling deal has propelled the S&P500 to its highest price since August, resulting in price surges for altcoins like LTC, LEO, and FGC. With cryptocurrencies trailing behind equities, Santiment suggests that Bitcoin could potentially close the gap soon.