Altcoin Whale Activity Is on the Rise as Whales Increase Their Long Positions in WLD, DOT, ARKM, COTI, DOGS, and ALICE

This accumulation by whales comes after a recent market dip that provided buying opportunities for altcoins and Bitcoin (BTC).

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Worldcoin (WLD) and Polkadot (DOT) are among the altcoins seeing increased attention from large investors. (CoinMarketCap)

Worldcoin (WLD) and Polkadot (DOT) are among the altcoins seeing increased attention from large investors. (CoinMarketCap)

Large investors, known as “whales,” are accumulating more long positions in several altcoins compared to retail traders, indicating a higher likelihood of volatility, especially when these positions are closed, for smaller investors, according to data from a recent analysis.

Whales are showing a stronger presence in the altcoin market, with their activity impacting prices and creating opportunities for traders to capitalize on the market movements.

Here’s a closer look at the whale activity and its potential implications:

Whale Activity in Altcoins

Recent analysis by a crypto data firm has revealed that whales are displaying a stronger preference for long positions in specific altcoins. This accumulation of assets by large investors could indicate an upcoming bullish trend in the market.

However, it also raises concerns regarding potential market manipulation and risks for smaller investors, highlighting the need for caution in making investment decisions.

The analysis showcases greater whale activity in several altcoins compared to retail traders, increasing the likelihood of volatility, particularly when these positions are closed.

Among the assets with higher whale interest are Worldcoin (WLD), Polkadot (DOT), Arkham (ARKM), COTI (COTI), DOGS (DOGS), and My Neighbor Alice (ALICE).

Data over the past 90 days shows WLD surging 26.25% and DOT skyrocketing 88%. Yet, in the last 30 days, ARKM fell 34.02%, COTI dropped 26.83%, DOGS declined 30%, and ALICE tumbled 32.21%.

CoinMarketCap Data and Altcoin Season Index

CoinMarketCap data reveals the Crypto Altcoin Season Index at 55 out of 100, up from last week’s value of 46. While this reading suggests increasing altcoin momentum, potential for whale-driven volatility warrants caution.

Altcoin Market Cap and Technical Analysis

At the time of writing, the total market cap of the digital asset space is $3.53 trillion, with $93.43 billion traded in the past 24 hours.

The weekly chart of the altcoin market cap shows the MACD indicator remaining bullish for altcoins in the medium term. The MACD line (blue) is almost parallel to the signal line (red).

The weekly RSI for the altcoin market cap reads 66.45, showing that bulls remain in control of the price action of altcoins. The gradient of the line suggests slightly weaker momentum for a brief period until a breakout occurs.

This article is for informational and educational purposes only. Coin Edition is not offering financial advice and encourages readers to do their own research and consult a qualified professional before making any investment.

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