On-chain data analysis conducted by CEO of analytic platform CryptoQuant, Ki Young Ju, reveals that whales are anticipating a surge in altcoins and are increasing their buy orders accordingly. This observation is based on the growing limit buy order volume for altcoins, excluding Bitcoin and Ethereum. The presence of significant buy walls suggests that large-scale investors are exerting considerable purchasing pressure.
Ju’s analysis identifies two distinct phases in the limit order volume for altcoins. The first phase, called the Limit Sell Phase, occurred in 2022 and witnessed a surge in cumulative sell orders, indicating substantial selling pressure from whales and other market participants. This period coincided with a decline in altcoin prices due to unfavorable market conditions.
Following the Limit Sell Phase, the Limit Buy Phase commenced, with a significant increase in cumulative buy orders. This phase signifies a strategic accumulation period in which whales establish strong support levels through their buying pressure. Ju suggests that this rising buy volume reflects confidence in future market conditions for altcoins, indicating that whales are preparing for a positive market shift.
Furthermore, Ju presented a heatmap showing the normalized 1-year cumulative buy/sell volume difference for various altcoins. Notably, altcoins such as Solana (SOL), Cosmos (ATOM), and Polygon (MATIC) exhibited heightened buying pressure despite mixed activity trends. Altcoins like Cardano (ADA), PancakeSwap (CAKE), AMP, and ANKR also experienced increased buying interest. Conversely, altcoins like DOGE, DASH, AXS, XRP, COMP, AAVE, and BNT demonstrated selling pressure, as indicated by predominantly red areas on the heatmap.
While whales accumulate altcoins, there is also significant activity among Bitcoin whales. Buyer activity on Binance has surged, aligning with an increase in the Taker Buy-Sell Ratio and whale movements. Analyst Ali Martinez highlighted fluctuations in the ratio, with values above 1.0 indicating aggressive buying, often preceding price increases. These observations correlate with price movements in Bitcoin, with ratio spikes corresponding to price increases and drops in the ratio leading to price declines.
Overall, the on-chain data suggests that whales are preparing for an altcoin surge, with increased buying activity indicating their confidence in the future market conditions for these assets.