Multiple wallets that have been dormant for 11 years have become active this week, with some wreaking havoc on altcoin prices. In the rest of the article, we have included 4 coins that are under the influence of big investors. Investors should be prepared for hard sells, experts say.
This altcoin is on the decline due to whale effect
Whales continue to affect crypto prices by making big moves in recent days. As Kriptokoin.com, we have included a huge whale transfer of the day in this article. Another development has had a drastic effect on the price of the whale selling large quantities of MKR.
The whale in question collected MKR between July 7 and 17 at an average price of $ 918. As of today, the market has poured all its investment from the level of $ 1.150. This sale was a profit purchase. In the last 3 weeks, he has made a total profit of $ 560,000 thanks to his MKR trading.
This smart whale dumped 1,598 $MKR($1.8M) an hour ago, which dropped the price of $MKR by ~2%.
The whale withdrew 2,760 $MKR($2.5M) from #Binance from Jul 7 to Jul 17, at an average withdrawal price of $918.
At current prices, the profit is ~560K.https://t.co/QUdtn6YHxh pic.twitter.com/m8xzS6HHWm
— Lookonchain (@lookonchain) July 26, 2023
According to Lookonchain, the whale sold 1,598 MKR (worth $1.8 million) in one hour. This resulted in a nearly 2% drop in the MKR price. Elsewhere, blockchain gaming token AXS is experiencing a planned wave of sales.
Axie Infinity (AXS) price drops as token unlock begins
AXS price rose 8% to $6 on Tuesday, 48 hours after the last token unlock event. The June 22 token unlock has been allocated as staking rewards for holders who lock their tokens in private smart contracts. On-chain data shows that only 48 hours after that, some investors started selling again.
As seen below, AXS’s token age has increased by 250% compared to the numbers recorded before the token unlock event. Specifically, Age Consumed values rose from 1.54 million to 5.43 million between July 20 and July 25. Age Consumed tracks the rate at which long-term holders exchange their tokens
On-chain data shows that AXS’ new user acquisition rate is on a downward trend. The chart below shows that on July 19, 345 new AXS wallet addresses were created. But as of July 24, it had dropped to just 153 new addresses. This 55% drop in user acquisition rate significantly impacts price action in the coming weeks.
Altcoin bulls have to hold this level in AXS price
After the on-chain indicators described above, AXS price is also having a hard time technically. Now, AXS bears will likely make a bold move to retest $5.0. However, the bears must first scale the critical support level at $5.20.
2,180 investors in this region purchased 378 million AXS tokens at an average price of $5.18. However, if long-term holders intensify the sale of Axie Infinity, AXS will inevitably return towards $4.50.
Still, if AXS price rises above $7, the chances of the bulls taking control are very slim. However, this is highly unlikely. Because 9,250 investors who bought 125 million AXS at an average of $ 6.97 could make a profit and repel the rally. Still, if they can reverse the $7 resistance, AXS will head towards $8.50.
Benjamin Cowen reminded what happened in 2019 at ADA price
According to the widely followed Cowen, Cardano (ADA) repeats the bearish pattern of 2019. The crypto analyst argues that Cardano has yet to find a bottom, comparing its 2023 price action to the market structure in the second half of 2019, when ADA continued to find new bottoms.
In his analysis, “There were definitely a lot of pumps at that time. I mean, there is no shortage of pumps for ADA. Its current moves are similar to when it rose 41% from $0.035 to $0.050 in 2019. However, he recorded numerous rallies like this one and eventually gave them all back.
According to Cowen, ADA rose in 2023 similar to 2019, when it formed double top patterns and then fell below the bull market support band, which is the combination of the 20-week SMA and the 21-week EMA in technical analysis.
After looking at ADA’s performance against Bitcoin (ADA/BTC), Cowen emphasizes that the price remained at these lows for another six months before recovering in 2019.
Altcoin bulls take control: MATIC price drops sharply
A short dip below $0.78 in MATIC price turned into a five-day event. Moreover, it maintained its downward momentum in the last 24 hours. Its price is currently hovering around a tight support zone at $0.71. Purchasing power of MATIC was cut due to decreasing demand. This indicates bearish dominance around $0.72.
For MATIC to regain its bullish momentum, the price must break above the psychological level of $0.74. But if selling pressure exceeds demand, the recovery attempt may be stalled. Additionally, the Moving Average Convergence Divergence (MACD) indicated that the bearish momentum of MATIC could increase. At the time of writing the MACD was -0.0022. This negative value indicates that the 12-day Exponential Moving Average (EMA) is below the 26-day EMA.
As a result, the next few days may see MATIC drop even lower. Unless the broader market, led by Bitcoin (BTC), rebounds, the altcoin will continue to decline from its peak.
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