Altcoin whales are preparing for a surge, according to Ki Young Ju, CEO of CryptoQuant. He shared insights on X, highlighting a notable increase in limit buy order volumes for altcoins, excluding Bitcoin and Ethereum. This indicates strong purchasing pressure from large-scale investors.
Ju’s analysis identifies two key phases in altcoin limit order volumes: the Limit Sell Phase and the Limit Buy Phase. The Limit Sell Phase in 2022 saw a spike in cumulative sell orders, reflecting heavy selling pressure from whales. This phase coincided with a period of significant price declines for altcoins due to unfavorable market conditions.
Following this, the Limit Buy Phase began. This phase is marked by a significant rise in cumulative buy orders, indicating that whales are now strategically accumulating altcoins. According to Ju, the increasing buy volume signals confidence in future market conditions for altcoins. This buying pressure creates strong support levels, suggesting whales are setting up for a positive market shift.
Buy Pressure on Specific Altcoins
Ju also shared a heatmap showing the normalized 1-year cumulative buy/sell volume difference for various altcoins, revealing buying and selling pressure over time. Solana (SOL) displayed alternating buying and selling phases, with recent activity indicating increased buying interest. Cosmos (ATOM) and Polygon (MATIC) showed heightened buying pressure despite mixed trends.
Cardano (ADA) and PancakeSwap (CAKE) demonstrated balanced buy and sell phases, with recent trends showing increased buying pressure. Coins like AMP and ANKR also exhibited a rise in buy activity. The heatmap reveals that most altcoins are experiencing increased buying pressure as whales accumulate in anticipation of a rally.
Conversely, coins like DOGE, DASH, AXS, XRP, COMP, and AAVE are experiencing selling pressure, as indicated by predominantly red areas on the heatmap.
While altcoin whales are active, Bitcoin whales are also in the game. Crypto Basic reported a surge in buyer activity on Binance, aligning with an increase in the Taker Buy-Sell Ratio. Analyst Ali Martinez noted fluctuations in the ratio from below 0.8 to above 1.7 between July 27 and July 31. Ratios above 1.0 indicate aggressive buying, often preceding price rises.
On July 27-28, the ratio stayed mostly above 1.0, corresponding with Bitcoin’s price rise from around $66.5K to above $67K. A spike to around 1.5 led to a sharp price increase to nearly $68.5K. However, on July 30-31, the ratio fell below 1.0 multiple times, correlating with a price drop back to around $66K before a final spike to 1.7 indicated another slight price increase.
