Crypto Whale Activity (Big Breakout Incoming)
According to blockchain analytics firm Santiment, increased crypto whale activity in one altcoin built on Ethereum (ETH) indicates a major trend reversal.
Maker (MKR), a well-established decentralized finance (DeFi) protocol that uses smart contracts to power stablecoin-based loans, has seen its largest whale transaction in more than three months, according to Santiment.
“Maker made its largest whale moves in over three months a couple hours ago. 24,331 MKR ($17.4M) was moved to a whale address, and then another identically sized move was made. On downswings, massive moves like this are often correlated with turnarounds.”
MKR is currently trading at $772.91, up more than 4% in the last 24 hours.
According to Santiment, there is another bullish sign in the crypto markets. Dormant TrueUSD (TUSD) coins are suddenly on the move, according to the firm, as the stablecoin’s supply on crypto exchanges has reached its highest level in nearly two years. Dormant coins are crypto assets that have been inactive for an extended period of time.
According to Santiment, such rapid movement in stablecoins usually bodes well for the crypto markets.
“TrueUSD has seen waves of previously dormant coins move to exchanges, propelling its exchange supply to 73% for the first time since June 22, 2021. Stablecoins moving to exchanges typically indicate increased purchasing power and a positive sign for crypto.”
Santiment also reports that Bitcoin (BTC) and Ethereum traders have been closing their positions at a loss in recent days, a trend that usually precedes a market bottom, according to the firm.
“Bitcoin and Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.”