Whales continue to play a key role in regulating the value of cryptocurrency markets, so tracking their buying activity could offer potential profit opportunities.
The analysis highlights altcoins that whales have been hoarding in December, with notable coins including Fantom (FTM), Dogecoin (DOGE), and Optimism (OP).
FTM
Fantom (FTM), the token of the Layer-1 Fantom blockchain, topped the list of altcoins purchased by whales in December. According to recent analysis, the main reason for whales to hoard FTM is the important transition from Fantom to Sonic, the shard snapshot is scheduled for December 1st.
Data from Santiment shows that the wallet balances holding between 1 million to 10 million FTM have increased from 202 million on November 24 to 208.74 million, indicating that whales are preparing for a significant surge in FTM.
If this trend continues, by December 2024, the price of FTM may rise to $2. However, if whales decide to stop buying, the price of FTM may fall below $1.
Dogecoin (DOGE)
Similar to previous months, Dogecoin (DOGE) again appears on the list of tokens that whales are hoarding in December for profit-seeking. According to IntoTheBlock data, the net flow of holders has increased compared to previous days.
This net flow measures the difference between the number of tokens bought and sold by whales. When the flow is negative, it means that the selling volume by whales exceeds the buying volume.
In the past few days, the total amount of DOGE held by whales was approximately 642 million. However, this number has now increased to 1.72 billion, indicating that whales have accumulated over $1 billion worth of DOGE in the past few days.
If this trend continues, the price of Dogecoin may continue to rise throughout December; otherwise, the value of Dogecoin may decline.
Although Dogecoin has performed strongly recently, multiple technical indicators suggest that the upward trend may be difficult to sustain. The Exponential Moving Average (EMA) indicates a potential 'death cross' in the short term, signaling a possible shift to a downward trend. If the price of Dogecoin falls below the key support level of $0.36, it may further drop to $0.14, returning to the lows of early November.
In this situation, one should act with caution and closely monitor market trends and changes in technical indicators. Although Dogecoin's market value once surpassed Porsche, market sentiment changes rapidly, and the risk of a short-term pullback should not be overlooked. For investors optimistic about Dogecoin's long-term development, patiently waiting for market adjustments may be a more prudent strategy.
OP
Optimism is a Layer-2 project built on Ethereum and is also an altcoin that whales are accumulating. Although OP currently has no major developments, the expectation of Ethereum's price increase in December is one of the factors driving whale purchases.
History shows that when the price of Ethereum rises, the price of OP often rises even more strongly. According to Santiment, the wallet balances holding between 10 million to 100 million OP tokens have recently increased sharply.
If this trend continues, the price of OP in December may see a significant increase, with a target price potentially reaching $4. However, investors should be aware that if whales stop buying, OP may fall below $2.
The future market will depend on whether it can maintain volatility with the support of 90,000 or continue to break down directly. The best scenario is for Bitcoin to oscillate at high levels, allowing Ethereum to take over and drive a number of altcoins to take off. Once Ethereum begins to surge, even if Bitcoin breaks the support at 92,500, it will provide Ethereum with some room for a pullback, which can be considered a relatively good state for a bull market relay. By utilizing support, short-term strategies can be effectively implemented since stop-loss lines are clear. During this phase, potential altcoins can be sought for participation, and to avoid the risk of Bitcoin's decline, a suitable short position on Bitcoin can be taken for hedging.
Here, high-quality altcoins that have not yet surged can be accumulated. For those that have already surged several times, it may be worth considering reducing some positions, at least to break even. Those who are cautious may choose to sell everything and switch to those that have not risen.
Of course, in the future, under good expectations, funds will continue to flow into the market for accumulation, which undoubtedly reflects a positive outlook for the market. At the same time, this will provide some assurance against price declines, especially for BTC. If there is a significant drop in the short term due to negative factors, I believe it may trigger a lot of funds to buy at the bottom.
If the short-term expectations of Trump's victory are no longer sustained, we should prepare for a pullback, referencing market analysis. Overall market value decreases, with BTC and ETH market values reducing, while altcoin market values increase, and their proportion rises. Based on this proportion, market risk appetite is gradually improving.