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CryptoQuant, an on-chain analytics provider, has recently issued its On-Chain Heatmap, unveiling the movements of diverse altcoins during this week. A CryptoQuantt-based noteworthy analyst “IT Tech” provided insights into the altcoin market data, indicating how extraordinary outflows and inflows can signify likely price changes. The crypto analytics firm took to its official X account to unveil the respective analysis.
On-Chain Heatmap: Unveiling Altcoin Movements This Week@IT_Tech_PL dives into how high altcoin inflows suggest potential price drops, while high outflows indicate potential buying opportunities.
— CryptoQuant.com (@cryptoquant_com) August 2, 2024
Full post 👇https://t.co/tBcsSAlmN0 pic.twitter.com/9N59YbioqO
CryptoQuant Reveals the Altcoin Movements of This Week via Its On-Chain Heatmap Analysis
In the analysis, IT Tech noted that the high inflows point toward a likely selling pressure. Such a scenario may reportedly pave the way for a price slump. On the other hand, high outflows suggest likely buying opportunities and may lead to price rises in return. The analysis reveals the importance of the inflows in the altcoin sector as a possible indicator of the impending price dips.
The analyst has based this scenario on the ground that substantial inflows into crypto exchanges normally highlight an upcoming selling trend. In this respect, they ultimately mount up the selling pressure. In the case of stable inflows, the CryptoQuant analyst nominated $ENX, $CHZ, $MASK, $MKR, $QNTT, and some other tokens. The others include $BNT, $YFI, $SLP, $SHIB, $BAL, $SKL, $HOT, $ZRX, $ENJ, $ANKR, $STORJ, $SRM, $UMA, $MANA, $BLZ, $GTC, $OMG, $1INCH, $AGLD, $ETH, $GHST, $OCEAN, and $AMP.
Altcoins with High Inflows and Outflows May Lead to Price Slumps and Price Rises Respectively
On the other hand, the analyst placed “POLY” as the chief altcoin in the case of high variability. Additionally, the analyst also predicted the potential outcome of the above-mentioned altcoins’ increased inflows. This may result in likely price dips. Therefore, the analyst advised the investors to keenly observe such assets for any noteworthy price movements. In the analysis of outflows in the altcoin sector, the analyst asserted that the respective scenario indicates bullishness.
Such altcoins’ decreased availability on exchanges highlights accumulation by investors, driving the prices up. Subsequently, the analyst included FET, COMP, DAR, CRV, VGX, DODO, SNX, SAND, LINK, ALCX, UNI, GALA, and JASMY among the altcoins with stable outflows. The other such tokens take into account KNC, YGG, ERN, ILV, MATIC, AXS, GRT, FTT, BTC, ALICE, AAVE, DYDX, SUSHI, OGN, TRIBE, and NMR. However, BAT shows high variability. In prediction for the altcoins having high inflows, the CryptoQuant analyst claimed that their decreased accessibility on exchanges may signify the likelihood of their accumulation. As per the analyst, they may pave the way for a bullish outlook in the future.