Cryptocurrency whales are selling off significant percentages of their holdings, impacting major tokens like Bitcoin, Ethereum, XRP, SHIB, and TRUMP. This has resulted in price drops and raised concerns over market stability. Analysts stress a cautious outlook while observing potential support levels that could indicate future movement.
Cryptocurrency markets have been buzzing with news of major sell-offs by crypto whales, who have started dumping sizeable portions of their holdings following a notable accumulation phase. This shift is particularly affecting major currencies including Bitcoin (BTC), Ethereum (ETH), XRP, and even meme tokens like Shiba Inu (SHIB) and the Official Trump token (TRUMP). Analysts are scrutinising these recent movements to assess their implications on the wider market.
Bitcoin, the heavyweight of cryptocurrencies, has experienced the most fallout from these sell-offs. Data from Coinbase’s premium gap indicator reveals that Bitcoin is trading at a lower rate on their platform than on others. This hints at a strong selling pressure coming from large holders or whales. Analyst Ali Martinez stated that about 50,000 BTC have been sold in the last ten days, which has nudged the price down to approximately $94,000. If bearish sentiment persists, further declines could be around the corner.
Ethereum isn’t escaping this trend either. Recently, a notable investor who took part in Ethereum’s ICO sold off their entire holdings—a total of 16,500 ETH, valued at around $29.35 million, at an average price of $1,779. Meanwhile, another whale has recently deposited about $2.05 million worth of ETH onto Binance after a three-month accumulation period. This signals a potential liquidation risk, with losses estimated at around $1.57 million.
XRP’s situation is also concerning. The number of XRP whales had increased, yet many have begun to deposit their assets onto Binance, seemingly preparing for sales. After hitting a resistance point around $2.20, XRP’s price has started to dip, prompting analysts to predict the possibility of it sinking below the $2 mark in the near term.
In the meme coin segment, Shiba Inu is under increasing pressure. Recent analyses from IntoTheBlock show whales and institutional investors liquidated an extraordinary 359 billion SHIB tokens in just one day. This massive sell-off pushed SHIB’s price below the crucial support level of $0.0000128, leading to a considerable selling wall between $0.000012 and $0.000013. Should this resistance hold, additional sell-offs may send prices spiralling further down to around $0.000010.
The Official Trump token (TRUMP) isn’t immune to this selling spree either. A whale disposed of 337,560 TRUMP tokens, incurring a $1.38 million loss, while another sold 427,568 tokens days earlier, leading to a $961,000 loss. This behaviour underscores a prevailing trend in the crypto market: when a token ceases to be profitable, whales are quick to liquidate.
Switching gears a bit, BONK has faced a noticeable price correction, plummeting by 8.67% within a single day after an impressive rise of over 41% in the preceding month. Analysts are eyeing a critical demand zone for BONK, falling between $0.00001546 and $0.00001405, as a potential support level amidst the current bearish sentiment.
Despite the downturn, trading activity for BONK remains unexpectedly strong. CoinGlass reports $2.55 million in spot buys during the current write-up, with a remarkable $18.63 million in spot buys over the past week—marking the largest influx since late January. This indicates that, while leveraged traders are having a tough time, spot buyers might be gearing up for potential long-term benefits or anticipating a technical bounce-back.
Yet, the market sentiment remains wary. The Taker Buy/Sell ratio for BONK is at 0.8457, suggesting that a majority of traders (54.18%) are taking short positions compared to those going long (45.82%). This reflects a bearish outlook pervading the market. In the last 24 hours alone, long positions worth $205,000 were liquidated, contrasting sharply with only $1,990 in short liquidations, signalling that bullish traders are being forcefully pushed out.
In conclusion, the movements by these crypto whales across various tokens underscore the delicate state of the cryptocurrency landscape. Major fluctuations in the value of Bitcoin, Ethereum, XRP, SHIB, and TRUMP due to these large sell-offs lead to an uncertain future. Analysts suggest potential support levels that might trigger a rebound, but in general, the sentiment leans toward caution as the market grapples with ongoing volatility and changing investor confidence.
