Cryptocurrency Whales are ‘Preparing For Next Altcoin Rally’ By Setting Up Massive ‘Buy Walls’

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As a seasoned crypto investor with a decade of experience under my belt, I can’t help but feel a twinge of excitement upon hearing the latest analysis from Ki Young Ju and CryptoQuant. The whales are preparing for the next altcoin rally, and as someone who’s learned the hard way that it pays to listen to the big fish, I’m ready to dive in.

As a market analyst, I’ve observed a strategic move by significant cryptocurrency investors, often referred to as ‘whales.’ They seem to be positioning themselves for an upcoming altcoin surge. This is evident through the increasing number of limit buy orders they have placed for various altcoins, not just Bitcoin and Ethereum. The growing volume of these buy orders suggests that robust ‘buy walls’ are being established in anticipation of the next altcoin rally.

According to the CEO of the on-chain cryptocurrency analytics firm Ki Young Ju, he recently posted on the microblogging platform X (formerly known as Twitter) for his over 350,000 followers that these large investors, or “whales,” are not only establishing barriers of sell orders at certain price levels but also setting up walls of buy orders.

It appears that whales (large investors) are getting ready for a surge in lesser-known cryptocurrencies, as the volume of limit buy orders for these altcoins, excluding Bitcoin and Ethereum, is on the rise. This increase suggests that substantial buying positions or strong ‘walls’ are being established.

— Ki Young Ju (@ki_young_ju) July 31, 2024

As an analyst, I’ve been analyzing the market trends using a heatmap provided by CryptoQuant. This tool provides a detailed insight into buying and selling pressure across multiple altcoins. Notably, Solana, Cosmos, and Polygon are currently experiencing significant buy interest, suggesting they could be promising investments. On the other hand, Cardano and PancakeSwap show a more balanced picture, indicating potential for both buying and selling opportunities.

Instead, while some coins like Bitcoin might be experiencing buying demand, others such as Dogecoin, Dash, and a few others seem to be undergoing selling pressure. According to CryptoGlobe’s report, several altcoins including Shiba Inu (the meme-based cryptocurrency), Cardano’s ADA token, and XRP could potentially recover soon due to a technical indicator indicating these cryptos are currently priced lower than their actual value.

The MVRV Z-Score, a metric for evaluating cryptocurrencies, was developed by Awe & Wonder based on the research of Murad Mahmudov and David Puell. It calculates this by finding the gap between a cryptocurrency’s total market capitalization and its realized market capitalization, then dividing that difference by the standard deviation of the market cap.

The MVRV Z-score measures the number of standard deviations between the current market value and the actual value (realized value). A positive score higher than 7 might signal that a bubble could be forming, suggesting investors are likely making significant profits. Conversely, a score below zero may hint that the market is experiencing losses or ‘bleeding,’ implying it’s not performing well.

Assets that seem underpriced based on their MVRV Z-Score – such as Uniswap, Shiba Inu, Cardano, XRP, Polygon, and Chainlink – have endured significant challenges. However, Santiment suggests that if the market experiences a prolonged bull run, these assets might see a resurgence because they could be positioned for growth.

Conversely, digital currencies such as Bitcoin, Ethereum, Dogecoin, and Toncoin have been identified as investments with a higher degree of potential risk because of their elevated MVRV Z-Scores, which might indicate overpricing.

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2024-08-02 03:22