Here’s what ALGO whales are up to while it treads shallow waters
The crypto market was expected to recover at the beginning of the third quarter. However, most cryptocurrencies failed to initiate any rise, consequently failing to show recovery. One such altcoin that failed to show any signs of recovery is Algorand [ALGO]. The altcoin has been stuck in a downtrend for a few months now, resulting in the whales taking charge of the asset.
Algorand whales take a bite…
…And a big one at that. ALGO whales, up until April 2021, dominated most of the supply of the altcoin, but since then, the concentration of the altcoin has reduced significantly, and as of 6 July these whales only account for 15.31% of the entire supply.
However, it seems like this cohort is planning on regaining some of that lost dominance. In terms of the total tokens in the control of the whales, the figure stood at 1.4 billion ALGO as of June 2022. These ALGO tokens are worth approximately $420 million, whereas as of 6 July, the same has risen to 1.92 billion ALGO (576 million).
Although the growth may not look as significant, this is the most that these whales have reacquired in more than ten months. Furthermore, this level of high concentration was last observed in September 2021.
This is despite the fact that in the last 24 hours, the outflows amounting to 183 million ALGO have been the highest outflows observed in about six months.
This shows that despite having about 14 million ALGO HODLers, most transactions are still being conducted solely by the whales.
Even at the time of writing, of the total volume generated through on-chain transactions coming up to $75.66 million, $63.9 million came from whales alone.
Whale Whale all the way…
Given that ALGO is only declining on the charts, this is the most appropriate time for the whales to accumulate as much as they can since retail investors aren’t. This would place them in a position that would reap profits to them right off the bat once the altcoin goes up.
The chances of the same aren’t too meek since the MACD is still maintaining its bullish crossover and the candlesticks aren’t too far away from the 50-day Simple Moving Average (blue) either, and flipping it into support would give ALGO the push it needs.