The cryptocurrency world has witnessed an interesting trend over the past few weeks: Ethereum whales are “buying the bottom”, taking an aggressive bullish stance despite the recent market downturn. This strategic move shapes the cryptocurrency world and reinforces Ethereum’s dominance in the industry. On the other hand, Chainlink is the focus of some altcoin whales. Here are the details…
Whales gave the altcoin market a drop like this
Market downturns tend to arouse fear and caution among many investors. However, Ethereum whales – individuals or organizations that own substantial amounts of Ethereum – take a different approach. Rather than succumbing to market pressures, they are buying large volumes of Ethereum, taking advantage of the price drop. This tactic is a classic “buy low” strategy that involves buying more when an asset’s price drops with the expectation that it will eventually recover and make substantial profits.
Santiment, a well-known Blockchain data analysis firm, tracks the activity of Ethereum whales. Their data shows that there has been a significant increase in Ethereum accumulation by these organizations over the past few weeks. This trend shows that some investors may have been deterred by the recent market downturn, but the whales are not. They continue to increase their holdings, reflecting their confidence in Ethereum’s long-term potential.
The aggressive accumulation of Ethereum whales has notable consequences. First, the activities of the whales support Ethereum’s price stability, helping to reduce the impact of market fluctuations. This stability could also attract more investors, boosting Ethereum’s popularity and further solidifying its position in the market. Second, it shows that whales have a strong belief in the long-term value of Ethereum. Their confidence could spread to other investors, creating a positive mood around Ethereum and potentially accelerating the price recovery.
What are chainlink whales doing?
Despite a slow recovery, Chainlink price seems to have triggered investors negatively as sales dominated the market towards the end of the week. Not very interestingly, whales took the lead in reducing their supply, even if price action remained largely unchanged. Chainlink price has taken the strain of the market after falling to July 2020 lows this week thanks to the recent crypto market crash. The altcoin, which was traded at $5.2 at the time of writing, is currently trying to recover without returning to its opening price.
During this time, the network observed a significant amount of sales, notable for the spike in the balance of exchanges. The supply on crypto exchanges has been hit by more than 17 million LINKs with a valuation of over $85 million. A large portion of this sale could be invested in whale addresses whose outputs reached 11-month highs. As a result, whale transactions have jumped to $300 million in a single day. This increase marks a 1.103 percent increase compared to the average transaction volume of $25 million.
Interestingly, LINK holders started selling at a time when Chainlink price started to go into recovery mode. The Moving Average Convergence Deviation (MACD) indicator is currently observing the retracement of red bars on the histogram. The Relative Strength Index (RSI) is also returning from the oversold zone and a neutral line turning into support will signal a successful recovery. At that time, if Chainlink price manages to turn the March low of $5.4 into a support base, it could break the barrier at $5.9 and reclaim $6.
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