Besides the top two cryptocurrencies, the altcoins are seeing a rally too. Polygon MATIC gained 11.09% in the last 24 hours and is trading at $1.11. MATIC surged 17.77% in the past seven days. Avalanche AAVE and DYDX are seeing an uptrend as well.
Santiment, the crypto intelligence tracker, said the recent spike in activity by whales on these networks needs to be watched closely. It highlighted that a rise in interest from large wallet investors is a precursor to increasing selling pressure and a decline in the asset’s price.
Data and charts suggest all three cryptocurrencies garnered increasing interest from large wallet investors in the network. Santiment outlined that large volume transactions are more than $100,000, by whales recorded their highest level since December. Experts say the surge in activity by whales needs to be watched closely. Whales typically engage in massive profit-taking and shed their holdings. This is followed by an increase in selling pressure. And this pushes the token’s price toward negative, resulting in a correction.
Experts said altcoins followed Bitcoin in 2023’s January rally and whales boosted their transaction volume accordingly. They urged the bulls to be cautiously optimistic when adding AAVE, MATIC, and DYDX to their long positions. Experts believe a large transaction count is a precursor of a correction in an asset. This is regarded as a sell signal. Furthermore, if Bitcoin breaches the $23,000 mark again and makes a run for $24,000, the altcoins will follow suit.