Major altcoins like Injective (INJ), Render (RENDER), and Polygon (POL) have seen a significant shift in the behavior of large investors. According to data from crypto trackers, large wallet investors have been moving their altcoin holdings to cold wallets, which could be a sign of an upcoming change in the price of these assets.
Big investors move altcoins off exchanges
Data from Santiment shows that among the altcoins that saw a change in large investor activity, INJ, RENDER, and POL have all been moved to cold wallets. Moving assets to cold wallets, meaning storing them offline or off-exchange, helps reduce selling pressure as it reduces the supply of the asset on exchanges.
The activities of large investors have led to price anomalies, and analysts at Santiment say this is an important signal for both the short and long term.
Specifically, for INJ, large investors moved the majority of their holdings off exchanges and into cold wallets in August 2023, and have continued to make further moves since then.
Polygon switched from MATIC to POL, and a large investor exodus was observed on September 9, 2024. Major RNDR investors moved assets to cold wallets on July 21, 2024, and balances on exchanges have remained stable since then.
INJ, RNDR, and POL posted gains of nearly 2% on Tuesday. If selling pressure eases and demand remains, these three altcoins are likely to continue to extend their gains. Often, large investor activity is a precursor to price changes.
The shift of large investors to cold storage for altcoins like Injective, Render, and Polygon could be an important indicator of upcoming price movements. The reduction in selling pressure on exchanges combined with the need to maintain a stable demand could create conditions for the prices of these assets to continue to rise. Closely monitoring the activities of large investors can help predict the short-term and long-term price trends for these altcoins.
