Whales’ Transfers Spark Concerns for Altcoin Stability

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Following the Federal Reserve’s recent interest rate decision on January 29, the cryptocurrency market has become increasingly volatile. Notably, six altcoins are facing significant risk of loss due to rising transfers to exchanges by whales. According to data released by the analysis platform Santiment on January 30, coins like Worldcoin (WLD) and Movement (MOVE) have seen the highest movement to exchanges. This heightened activity raises concerns about potential selling pressure on these altcoins in the short term.

Which Altcoins Are Highlighted by Santiment Data?

Santiment’s analysis indicates that in the last 24 hours, the standout altcoins in whale exchange transfers include WLD and Lido Staked ETH (stETH). A total of 0.21% of Worldcoin’s supply has been transferred to Bybit, while 0.20% of stETH has also moved to the same exchange.

Mantra (OM) and Reserve Rights (RSR) also saw significant transfers, moving 0.20% and 0.14% of their total supplies to Binance, respectively. Additionally, Maker (MKR) and MOVE experienced transfers of 0.12% and 0.08% of their supplies to Coinbase and KuCoin.

These high-volume transfers could disrupt the supply-demand balance, leading to price declines. Whales’ sudden selling actions may incite panic among smaller investors, increasing short-term volatility. However, these altcoins have shown slight gains during the market’s overall recovery.

Market Signals Recovery Despite Uncertainty

After the Fed decided to maintain interest rates, Bitcoin and other major altcoins have seen price increases. Nevertheless, doubts about the long-term performance of the altcoins flagged by Santiment persist. WLD has risen by 2% to $1.78, while OM saw a 4% jump to $4.76. StETH and RSR are trading at $3,180 and $0.0132 after increases of 1% and 3%, respectively. In contrast, MOVE and MKR experienced slight declines of 1.5% and 1%.

Another notable development that could impact the market is the purchase of 2.4 million MOVE coins by a wallet allegedly linked to Donald Trump. While this transaction may boost interest in Movement, the potential for whale selling trends leaves the coin’s short-term future uncertain. Investors expect macroeconomic data and regulatory news will shape the market in the coming weeks.

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