Crypto analytics firm Santiment has identified promising signals for altcoins following Bitcoin’s surge to $103,256.7, surpassing the $100,000 milestone. A specific metric has revealed a sudden uptick in activity, suggesting a potential rally in the altcoin market.
Increase in Whale Transactions
According to Santiment, large whale transactions have risen significantly across various altcoins, including the stablecoin Dai (DAI) created by Maker. This increase could indicate that investors are anticipating substantial market movements. Santiment notes that the growing acquisition of DAI may imply that investors are preparing to accumulate altcoins using stablecoins.
“Rising activity in stablecoins often signals that substantial funds are ready to be exchanged for altcoins. For instance, Dai is frequently linked to ETH-based assets,” Santiment explains.
Top Altcoins and Whale Activity
Santiment has shared a list of the top 10 altcoins with a market cap exceeding $500 million that have experienced the most significant increases in whale transactions this week. These assets highlight notable movements within the altcoin space.
“Assets with high whale activity are more likely to experience price reversals, whether due to profit-taking or dip-buying movements,” Santiment warns.
Additionally, Santiment has reported a surge in network activity alongside an increase in XRP’s value. XRP is currently trading at $3.24, following a 4.2% drop over the past 24 hours. However, the token recently crossed the $3.39 mark for the first time since January 2018, with 2,365 transactions exceeding $100,000 recorded in just 8 hours. The total number of investors has also grown notably.
Implications for Investors
These developments present potential opportunities in the altcoin market for investors. However, as Santiment cautions, heightened whale activity could lead to increased market volatility, so investors should remain vigilant.
Dey There will continue to monitor the evolving dynamics of the altcoi
