Last weekend, significant on-chain data revealed a massive wave of altcoin selling by major cryptocurrency holders, commonly referred to as "whales." From Ethereum to smaller tokens like PEPE and HYPE, millions of dollars in digital assets were liquidated or moved to exchanges.
These substantial transactions have captured market attention and raised questions about the future direction of the cryptocurrency market.
Ethereum Leads the Whale Selling Spree
Ethereum emerged as one of the most prominently sold altcoins over the weekend. A noteworthy activity involved an original "OG" address that held 1 million ETH from the initial coin offering (ICO) era. Recently, this address sold 991.67 ETH, valued at approximately $2.51 million. Since May 26, this whale has sold a total of 9,845.96 ETH, equivalent to $25.23 million.
With an initial acquisition cost of just $0.31 per ETH, these sales represent significant profit-taking. If the whale continues selling at a rate of 1,000 ETH per week, this activity could persist for months or even years.
In a separate transaction, another dormant whale, inactive for four years, suddenly transferred 4,949.63 ETH to a centralized exchange (CEX). Additionally, a different whale withdrew 10,708 ETH from Lido and promptly sent it to OKX.
These moves, combined with another whale depositing 1,054 ETH into Binance at a 25% loss, reflect either market fear or strategic profit-taking amid ongoing volatility.
However, not all activities indicated selling. One whale spent 467.58 ETH (worth about $1.18 million) to increase their holdings of KTA, demonstrating a pursuit of opportunities in other promising projects rather than a sole focus on Ethereum.
Despite short-term bearish signals, traders remain optimistic about the long-term prospects for altcoins.
"ETH is still consolidating after a bullish May. ETF inflows are rising, and network activity is increasing, which means the price should soon follow. I believe ETH will reach $3K this month and $4K by Q3 2025." – Analyst Ted.
Other Large-Cap Altcoins Also Sold by Whales
Besides Ethereum, other large-cap altcoins were also targeted by whales over the weekend. HYPE, the native token of Hyperliquid, faced considerable selling pressure. One whale generated over $38 million in profit by selling 131,137 HYPE tokens.
The consistent deposit of altcoins to exchanges by multiple whales can serve as a strong selling signal. Another whale sent 1 trillion PEPE (valued at $11.65 million) to Binance. Four addresses owned by the same entity deposited 356,000 LINK to Binance, with an estimated return on investment (ROI) of 97.3%.
Additionally, another whale withdrew $7.52 million in SOL from staking and transferred most of it to Binance.
These actions may serve as critical market indicators. Historically, whale selling often aligns with price peaks, as large holders lock in gains after significant rallies. However, it can also reflect concerns about an impending market correction. Compared to past data, similar sell-offs have frequently resulted in sharp volatility but also created buying opportunities at lower support levels.
With the total value of these transactions reaching tens of millions of dollars, investors are advised to closely monitor on-chain metrics and trading volumes. If the selling trend continues, the market could face short-term downward pressure. Conversely, if new demand emerges, prices may recover.
Frequently Asked Questions
What does "whale" mean in cryptocurrency?
In the crypto market, a "whale" refers to an individual or entity that holds a large amount of a particular cryptocurrency. Their transactions can significantly influence market prices due to the substantial volume of assets they control.
Why do whales sell their holdings?
Whales may sell their holdings to realize profits, mitigate risks, or reallocate their investments. Large sales often occur after substantial price increases, allowing them to capitalize on gains.
How can retail investors respond to whale sell-offs?
Retail investors should stay informed by monitoring on-chain data and market trends. During whale sell-offs, it may be prudent to avoid panic selling and instead look for potential buying opportunities if the market stabilizes.
Are all whale transactions indicative of market trends?
Not necessarily. While large sales can signal profit-taking or bearish sentiment, some whales may also be reallocating assets rather than completely exiting the market. Context and additional market indicators are essential for accurate interpretation.
What tools can help track whale activity?
Various on-chain analytics platforms provide real-time data on large transactions, wallet movements, and exchange flows. These tools can help investors stay updated on significant market activities.
How does whale activity affect altcoin prices?
Whale selling can create immediate downward pressure on prices due to the large supply introduced to the market. Conversely, whale accumulation may drive prices up by reducing available supply and increasing demand.
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Disclaimer: All information provided is intended for general informational purposes only. Any actions taken based on this information are solely at the reader’s discretion. Some articles may include AI-translated content from the original English version of BeInCrypto.