Their analytics platform says 2 altcoin projects are on the verge of a mass sale event due to a number of on-chain factors.
CryptoQuant warns of mass sale event for this altcoin
The firm says the Shanghai hard fork, which is scheduled for March next year and will result in at least 15.3 million ETH being unlocked, could have implications for the Ethereum price. CryptoQuant also says that as staking ETH accumulates, Ethereum reserves on crypto exchanges tend to decline:
Mass ETH sale event coming? The ETH2 Deposit [smart contract] was collected and held 12% of the total supply. What will happen to ETH after the Shanghai hard dork as ETH foreign exchange reserves fall to 15% of the total supply and continue to decline?
Ethereum’s temporary to PoS has given investors the ability to earn returns in the form of ETH through staking. Early next year, there will be mass unlocks of 15 million ETH worth over $17.7 billion. CryptoQuant says investors can sell their Ethereum to seek higher-yielding opportunities:
After Merge, the supply started to decrease. ETH price volatility is imminent. Will Shanghai trigger the bulk sale? Or is it an opportunity that provides more liquidity to buy more ETH?
Ethereum is currently trading around $1,200, down over 75% from the ATH level. Along with the leading altcoin, Chiliz comes to the fore with selling pressure.
Huge Chiliz (CHZ) transfers have surfaced in the last 24 hours
On-chain analytics platform Lookonchain detected massive Chiliz transfers during the day. A Chiliz whale transported approximately 14 million CHZ worth $1.6 million to nine different addresses. Based on previous transactions, Lookonchain predicts that CHZ tokens may eventually flow to exchanges.
This $CHZ whale transferred 14M $CHZ($1.6M) out to 9 addresses again.
Based on previous trading behavior, these $CHZ will eventually enter exchanges.https://t.co/zEYp1Pqafu pic.twitter.com/fAbcBvJWaU
— Lookonchain (@lookonchain) December 19, 2022
Whales often transfer their assets to exchanges to sell and vice versa. In the past 24 hours, whales have bought the CHZ dip, which has fallen as low as $0.07. According to WhaleStats data, Chiliz (CHZ) was among the top 10 tokens purchased by the top 5,000 ETH whales.
Whales often enlarge their wallets at a discounted price during downturns. Some may decide to “hodl” or resell at a higher price to maximize short-term gains.
Here is the reaction of the CHZ price to the trades
As you follow on Kriptokoin.com, Chiliz (CHZ) is currently trading down 3% from the last 24 hours. It has lost 20% compared to the previous week and 55% compared to the last month. The downward momentum occurred during the FIFA World Cup, which just ended. Prior to the worldwide event, traders were expecting a strong CHZ performance due to the continued bullish pre-event. Unfortunately, circumstances were different as Chiliz saw selling pressure instead.
Fears of the FTX bankruptcy and subsequent contagion have not helped the crypto industry at all. On December 8, Lookonchain reported that a giant whale with 680 million CHZ worth approximately $102.6 million has sold Chiliz tokens. Whale was the fourth largest Chiliz investor. It then moved around 20 million Chiliz to nine different addresses. On December 8, the CHZ price closed the day down 6%.
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