The cryptocurrency market has generally turned red today and is consolidating. However, there are also those who see this decline as a buying opportunity. Famous market maker DWF Labs increased its LIT investments amid the price decline. On the other hand, there are those who take action for spop-loss. Investment firm Hashkey is piling the leading altcoin Ethereum onto exchanges, Lookonchain reports.
DWF Labs Litentry increases investments, altcoin price reacts positively
As you follow from Kriptokoin.com, the market started the week in the red zone. However, the high performance it showed in previous weeks still remains strong. That’s probably why there are those who see this price drop as an opportunity. One of them is the famous market maker DWF Labs. DWF Labs has added Litentry (LIT) investments, on-chain analytics platform Lookonchain reported. DWF Labs recently purchased more tokens from the altcoin project it partnered with. Lookonchain announced the development as follows:
DWF Labs received 1.5 million LIT ($1.41 million) from the Litentry ecosystem, also 2 hours ago. DWFLabs received 1.5 million LIT ($1.41 million) on October 31 and announced its partnership with Litentry on November 10. Currently, DWFLabs holds 3 million LIT ($2.78 million) and is LIT’s largest individual holding address.
DWF Labs received 1.5M $LIT($1.41M) from Litentry: Ecosystem again 2 hrs ago.@DWFLabs received 1.5M $LIT($1.41M) on Oct 31 and announced the partnership with @litentry on Nov 10.
Currently, #DWFLabs holds 3M $LIT($2.78M) and is the largest individual holding address of $LIT. pic.twitter.com/XYdrFHSibk
— Lookonchain (@lookonchain) December 11, 2023
Following the development, the altcoin price, which was moving in the red zone, jumped to the green zone. While LIT was trading at $0.895, where it dropped during the day, it suddenly jumped to the $0.98 region. However, the token could not progress much in the green zone due to the negative atmosphere in the market. At press time, LIT was changing hands at $0.9544, losing 0.84% on a daily basis.
LIT daily price chart. Source: CoinMarketCapHashkey stacks ETH on Binance, stop-loss?
On the other side, there was a sales story. Investment company Hashkey has decided to branch out into Ethereum, on-chain analytics platform Lookonchain reported. Accordingly, Hashkey is stacking leading altcoin tokens on cryptocurrency exchange Binance. In this context, Lookonchain made the following statement:
Hashkey-related wallet just deposited 3,500 ETH ($7.86 million) to Binance. The wallet had withdrawn a total of 26,114 ETH ($60.9 million) from Binance and OKX between December 5 and December 9 at $2,333. This looks like a stop-loss sale.
The wallet related to #Hashkey deposited 3,500 $ETH($7.86M) to #Binance just now.
The wallet has withdrawn a total of 26,114 $ETH($60.9M) at $2,333 between Dec 5 and Dec 9 from #Binance and #OKX.
It seems to be a stop-loss sell-off.https://t.co/Q8peqwC2md pic.twitter.com/V97jNnAskW
— Lookonchain (@lookonchain) December 11, 2023
The leading altcoin price dropped because whales are selling!
One of the most obvious reasons for the flash crash affecting the Ethereum price is that large holders are selling. This month, ETH reached its highest level in the last year. This brought many investors back to profit. Now, since the crypto market has not experienced a full rally, there are expectations that the market may crash. Additionally, investors are trying to secure their profits before this happens.
Crypto analyst Ali Martinez flagged selling from these large holders. According to him, these large holders actually started selling when the altcoin price first crossed $2,300. This means that selling pressure has been building for some time before being reflected in the price. Whales with more than 10,000 ETH in their balances began to reduce their assets towards the end of November. By December, their holdings fell to their lowest point in three months, evidence that these whales were making massive sales.
ETH price chart. Source: Tradingview
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