Whales Circle Three Altcoins as Crypto Markets Seek February Turnaround
After a turbulent January that saw early gains evaporate in a late-month sell-off, the crypto market is searching for direction. A closer look at blockchain activity reveals a telling trend: major investors, often called 'whales,' are not retreating but are instead strategically accumulating select altcoins. Their focus has narrowed to three assets—Shiba Inu (SHIB), Pendle (PENDLE), and Cardano (ADA)—where on-chain data and technical analysis suggest the first green shoots of a potential reversal may be forming.
This accumulation pattern, visible through tracking large wallet balances, indicates a move away from panic and towards calculated positioning. Whales appear to be capitalizing on recent price weakness, betting on selective rebounds rather than chasing fleeting momentum. Their actions often serve as a leading indicator, providing clues to where smart money is flowing ahead of broader market moves.
Shiba Inu (SHIB): Meme Coin Defies the Downtrend
In a surprising move, Shiba Inu has attracted significant whale interest. While most altcoins bled red in January, SHIB managed a 3.3% gain over the past 30 days. This relative strength is now being backed by deep-pocketed investors. Data shows whale holdings increased by 690 billion SHIB between January 27 and 30, a steady accumulation during market-wide uncertainty.
The timing aligns with a key technical setup. Between early November and late January, SHIB formed a bullish divergence on its charts: the price made a lower low, but the Relative Strength Index (RSI), a momentum gauge, formed a higher low. This classic signal suggests selling pressure is waning. The divergence occurred within a broader falling wedge pattern, often a precursor to a breakout. For the signal to confirm, SHIB needs to hold above $0.0000071. A successful hold could see momentum build toward $0.0000091, with further upside potential.
Pendle (PENDLE): Whales Bet on a DeFi Rebound
Despite recent struggles in the DeFi sector, Pendle is seeing conviction buying from large holders. Whales added over 3.27 million PENDLE tokens worth approximately $6.3 million in a short span, starting January 27. This accumulation comes as the token's price reflects broader sector weakness, down over 5% monthly.
The whale activity coincides with another emerging bullish divergence on PENDLE's 12-hour chart, similar to the pattern observed in SHIB. For this setup to remain valid, the price must defend the $1.78 level. If it holds, it improves the odds of a reversal, with initial resistance near $2.08. This scenario represents a classic whale play: accumulating an asset during a pullback, supported by improving underlying momentum indicators.
Cardano (ADA): A Sudden Surge of Whale Confidence
Cardano has abruptly re-entered the whale spotlight. In a coordinated 48-hour buying spree starting January 28, the two largest holder groups scooped up nearly 300 million ADA. This aggressive accumulation is particularly notable as ADA's price has been under pressure, down over 7% in the past month.
The rationale appears technical. ADA is flashing a potential bullish divergence, with price making a lower low since late December while its RSI formed a higher low. The key level to watch is $0.31; holding above it confirms the pattern and could trigger a move toward the next major resistance at $0.36. The whale accumulation suggests these large players are positioning ahead of this potential technical confirmation.
Market Voices: A Mix of Caution and Conviction
"Whale movements are one of the few reliable leading indicators we have in this noise," says Marcus Chen, a portfolio manager at Horizon Digital Assets. "Their accumulation during fear often marks local bottoms. The alignment with technical divergences in these three cases is too compelling to ignore for February positioning."
However, not all analysts are convinced. Rebecca Vance, a vocal crypto skeptic and independent analyst, offers a sharp rebuttal: "This is just narrative-spinning around random wallet movements. Calling this 'strategic positioning' is a joke—it's gambling dressed up as analysis. These same signals failed countless times in 2023. Retail investors following this 'whale watching' will be the exit liquidity, again."
David Park, a decentralized finance (DeFi) researcher, strikes a more balanced tone: "The Pendle accumulation is the most interesting. It's a complex yield-trading protocol, and whale interest there suggests sophisticated players see value others are missing. For SHIB and ADA, it's more about catching a technical bounce. The key is whether this whale activity attracts broader market follow-through in February."
Analysis by The Crypto Brief. For daily insights and market intelligence, subscribe to our newsletter here.