The price of the Illuvium token (ILV) took a significant hit earlier today as a major holder offloaded a portion of their holdings, according to the on-chain data tracker Lookonchain.
In a tweet, Lookonchain stated: “The price of $ILV plummeted ~8% just now due to the sell-off by luggis.eth. And luggis.eth still holds 299,930 $ILV($34.37M), watch out for the next sell-off. Join our telegram group to get more alphas.”
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Show more +For those unfamiliar with crypto lingo, a “whale” refers to an individual or entity holding a very large quantity of a particular cryptocurrency. When whales sell or “dump” major portions of their holdings, it can create significant downward pressure on the token’s price due to the increase in supply hitting the market.
In this case, the wallet address luggis.eth executed a large sell order of the ILV token, leading to an 8% drop in its price. However, Lookonchain notes that this same whale still controls nearly 300,000 ILV tokens worth over $34 million at current prices. The prospect of further sell-offs from this whale has raised concerns about potential continued downside for ILV.
The Impact of Whale Movements
Major sell-offs from whales can often trigger a cascading effect, spooking other large holders and retail investors to also exit their positions. This amplified sell pressure can lead to an escalating decline in price as daily trading volumes become overwhelmed by the surging supply which could be the beginning of more woes for the crypto.
However, it’s also possible that the recent 8% dip presents a buying opportunity for those confident in Illuvium’s long-term prospects if the whale’s selling is perceived as temporary profit-taking rather than a loss of faith in the project.
Only time will tell if this recent 8% slide marks the start of broader selling pressure or a fleeting disruption in Illuvium’s trajectory. Crypto investors would be wise to keep a close eye on further updates from prominent on-chain data analysts.
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