The crypto market has been experiencing a turbulent period recently, with the global market value down 4% in the last 24 hours. However, some assets have caught the attention of whales, those major investors who trade against the general trend. Why are these market giants betting on an imminent rally? Let’s dive into the reasons and strategies behind this bold accumulation.
Whales against the current
Whales have a significant influence on the crypto market. Their behavior can often be an indicator of future trends. Last week, as the crypto market was declining, these investors chose to trade against the trend, anticipating a rise in the coming weeks.
This bold strategy is based on in-depth analysis of on-chain data and market indicators.
For example, the price of Toncoin (TON) fell 17% last month, but whales saw this drop as a buying opportunity.
TON’s market value to realized value (MVRV) ratio readings indicate that the altcoin is currently undervalued, which is a strong buy signal.
Whales don't just speculate; they act on hard data.
According to data from Santimentthe number of TON whales holding between 100,000 and 10,000,000 tokens has increased by 2% over the past month. This group of holders is currently at an all-time high, showing renewed confidence in TON’s potential.
Accumulation of cryptos
Increased demand for TON by whales could also attract interest from individual investors.
If this happens and the token starts an uptrend, the token price could reach $6.81. This dynamic is not unique to the TON crypto; other cryptocurrencies are showing similar signs.
For example, IntoTheBlock on-chain data revealed a significant 243% increase in net flow from top TRX holders over the past 30 days.
Major holders refer to addresses holding more than 0.1% of an asset’s circulating supply. Their netflows measure the difference between the tokens these investors have bought and sold over a certain period of time. When they increase, it means that crypto whales are buying more tokens, which is considered a bullish sign indicating a potential price increase.
It is important to note that TRX whales have increased their accumulation despite the token's sideways movements over the past month.
Signs of recovery
The relative balance between buying and selling pressures of the BNB crypto has prevented its price from showing a strong trend in either direction in recent weeks. However, Chaikin Money Flow (CMF) The token has maintained an upward trend during this period. This indicator measures the flow of money into and out of the market of an asset, and as of the time of writing, BNB’s CMF data stands at 0.24.
A rising CMF with a sideways price movement indicates a potential bullish divergence. This shows an increasing flow of money into the asset and is usually a sign of accumulation by large investors. Although the BNB price is consolidating sideways, the rising CMF data indicates that the fundamental strength of the token is increasing. If BNB manages to break out of this range, its price could reach $617.
Whales, with their ability to influence the market, seem to anticipate a rise in cryptocurrencies. Their strategic accumulation of tokens like TON, TRX and BNB, despite the current turbulence, is a sign of confidence in the potential of these assets.
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