Founder: Crypto Whales Expect an Altcoin Rally
31 Jul, 2024 ● Crypto people
CryptoQuant founder Ki Young Ju believes that crypto whales are positioning themselves for the next altcoin rally, as traders debate the start of alt season.
Ju’s analysis focuses on the 1-Year Cumulative Buy/Sell Quote Volume Difference for Altcoins, a metric that measures the difference between buy and sell limit orders over a year.
The analyst explained that whales prefer limit orders to avoid slippage.
The rising metric suggests increasing buy-limit orders among large crypto investors and institutions, which represent "strong buy walls" of future demand for altcoins.
Not all altcoins are poised to capitalize.
According to Ju, certain altcoins like Solana, Polygon, Cardano, Cosmos, PancakeSwap, My Neighbor Alice, Ampera, Ankr Protocol, and Chilliz are set to benefit the most from increased future buy orders.
Conversely, tokens like XRP, Chainlink, Compound Finance, Bancor Network, and Aave are currently seeing shortfalls in future buy orders.
Crypto analyst Jamie Coutts recently shared a similar altcoin market prediction
He cited the Top 200 Equal Weight Index as evidence that the market has reached a bottom, signaling a potential rally in altcoins.
This index tracks the price performance of the top 200 altcoins by market capitalization compared to Bitcoin.
A lower reading from this metric indicates that fewer altcoins are outperforming Bitcoin, while a higher reading indicates more altcoins are outperforming Bitcoin.
When Coutts made his prediction, the metric was between 10-20%.
Popular crypto trader “Mags” recently claimed that the altcoin market is in a re-accumulation phase.
The trader argued that altcoins were only up 58% on average since breaking out from a lengthy accumulation phase, suggesting a minor pullback before further gains.
Sources:
https://cointelegraph.com/news/whales-preparing-next-altcoin-rally-cryptoquant-founder
https://x.com/ki_young_ju/status/1818706931625730298
