In a recent exploration, on-chain analyst Lookonchain has shed light on some intriguing whale activities surrounding the Bluzelle (BLZ) token, which have notably influenced its market position.
What you'll learn 👉
Sudden Deposit Triggers a Price Drop
A substantial deposit has been observed in the crypto sphere, where a whale wallet has deposited a whopping 12.16M BLZ, equivalent to $1.45M, to Binance, causing a notable disturbance in the market. This action resulted in a ~14% drop in the price of $BLZ, showcasing the significant impact that whale movements can have on cryptocurrency prices.
Moreover, it’s crucial to note that there are three whale wallets that collectively hold 134.5M BLZ, which translates to $16.2M and represents 27% of the total supply. For those considering shorting BLZ, it’s advisable to keep a close eye on these wallets and observe whether they engage in selling BLZ, as such actions could further influence the market dynamics.
Potential Synchronized Whale Activity
Intriguingly, two wallets, labeled as 0xBf2B and 0xE8F1, may be under the control of the same whale entity. These wallets withdrew a substantial 109.8M BLZ ($13.22M), accounting for 22% of the total supply, from Binance during a price surge of $BLZ in August. The whale, currently in a profitable position, possesses the potential to significantly impact the market if they decide to sell, given the substantial amount of $BLZ they hold.
Further analysis reveals that wallet 0xCc82 withdrew 24.75M BLZ ($2.98M) from Binance on September 26, when the price was pegged at $0.19. Notably, 0xCc82 executed the $BLZ withdrawal from Binance on the same day as the whale wallet that dumped $BLZ recently, leading to a plausible assumption that they might be the same entity.
Given this context, there’s a likelihood that this wallet may dump $BLZ at a loss in the future. Such a move would be particularly noteworthy for traders and investors to monitor, as it could present further fluctuations in the $BLZ market.
The activities of whale wallets, particularly in the context of $BLZ, underscore the profound influence that large-scale movements can exert on the cryptocurrency market. For traders and investors, keeping a vigilant eye on such activities and understanding the potential implications of these large transactions can be pivotal in navigating the often tumultuous waters of cryptocurrency trading.
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