1inch has been one of the best-performing digital assets over the last day, outperforming even the largest players in the space. This run is still continuing as of Monday morning, but the rally is being threatened by a single whale transaction seen on the blockchain just a couple of hours ago.
Whale Deposits $3.88 Million In 1inch To Binance
On-chain data tracker Lookonchain, on Monday, flagged a transaction that could negatively affect 1inch’s current price rally. The transaction was made by a whale carrying a total of 7 million 1inch tokens.
Now, such transactions are not out of the ordinary given that whales tend to move their coins around a lot. However, what is of concern here is the destination of the coins.
Note that a #1INCH investor deposited 7M #1INCH ($3.88M) into #Binance just now after the price of #1INCH rose.https://t.co/evi8W1swDw pic.twitter.com/WzlhogyO2q
— Lookonchain (@lookonchain) July 17, 2023
The transaction shows that the whale sent the 7 million 1inch tokens, worth $3.88 million at the time of the transaction, to Binance. This move is of concern to investors because the destination of a transaction can often provide insight into why the owner did it in the first place.
More often than not, when investors are sending coins to centralized exchanges (CEX) such as Binance, it is to sell. This is because there is deeper liquidity on centralized exchanges, as well as lower fees. Thus, such a large holding being moved to Binance would suggest that this whale is looking to sell their coins.
What Does This Mean For The Token?
Given the size of the transaction and the total amount of tokens being sent, if the whale were to begin selling, then it could lead to significant selling pressure on the digital asset. If this happens, then it could contribute to a stall in the rally and even lead to a price reversal.
At the time of this writing, the price of 1inch is already correcting back downward which could suggest that the whale is finally selling their tokens. The digital asset which had surged over 50% to almost $0.6 in the early hours of Monday has already lost the majority of its gains. The price is now sitting at $0.44, representing only a 6% gain in the last 24-hour period.
1inch price crashes following whale pressure | Source: 1inchusdt on TradingView.com
1inch’s movement provides insight into how whales can effectively move the market if their positions are large enough. However, it is not out of the ordinary as the whale was likely just capitalizing on the price surge and securing profits.
Nevertheless, 1inch could still resume its rally if buyers are able to provide enough demand to soak up the supply being dumped into the market right now. Otherwise, the price will likely keep falling, returning to the level where it started the day.