Crypto in Decline: Whales Anticipate a Rebound!

The crypto market has recently experienced a period of turbulence, with a 4% drop in global market value recorded over the past 24 hours. However, some assets have caught the attention of whales, these major investors who trade against the general trend. Why are these market giants betting on an imminent rebound? Let’s dive into the reasons and strategies behind this bold accumulation.

The Counter-Current Whales

Whales have a significant influence on the crypto market. Their behavior can often be an indicator of future trends. Last week, while the crypto market was in decline, these investors chose to trade against the current, anticipating a rise in the coming weeks.

This bold strategy is based on a thorough analysis of on-chain data and market indicators.

For example, the price of Toncoin (TON) dropped 17% last month, but whales saw an opportunity to buy in this decline.

The readings of the market value/realized value (MVRV) ratio of TON indicate that the altcoin is currently undervalued, which constitutes a strong buy signal.

Whales do not just speculate; they act based on concrete data.

According to data from Santiment, the number of TON whales holding between 100,000 and 10,000,000 tokens has increased by 2% over the last month. This group of holders is currently at a record level, which shows renewed confidence in the potential of TON.

The Accumulation of Cryptos

The increase in demand for TON by whales could also attract the interest of individual investors.

If this happens and the token starts an upward trend, the token price could reach $6.81. This dynamic is not unique to the TON crypto; other cryptocurrencies show similar signs.

For example, on-chain data from IntoTheBlock revealed a significant 243% increase in the net flow of major holders of TRX over the last 30 days.

Major holders refer to addresses holding more than 0.1% of an asset’s circulating supply. Their net flows measure the difference between the tokens these investors bought and sold over a certain period. When they increase, it means that crypto whales are buying more tokens, which is considered a bullish sign indicating a potential price rise.

It is important to note that TRX whales increased their accumulation despite the token’s sideways movements over the past month.

Signs of a Rebound

The relative balance between buying and selling pressures of the BNB crypto has prevented its price from showing a strong trend in one direction or the other over the past few weeks. However, the Chaikin Money Flow (CMF) of the token has maintained an upward trend during this period. This indicator measures the money flow entering and exiting an asset’s market and, at the time of writing this article, the CMF data for BNB stood at 0.24.

A rising CMF with a sideways price movement indicates a potential bullish divergence. This shows an increasing money flow into the asset and is generally a sign of accumulation by large investors. Although BNB’s price consolidates sideways, rising CMF data indicates that the token’s fundamental strength is increasing. If BNB manages to break out of this range, its price could reach $617.

Whales, with their ability to influence the market, seem to anticipate a rebound in cryptocurrencies. Their strategic accumulation of tokens like TON, TRX, and BNB, despite the current turbulence, is a sign of confidence in the potential of these assets.