This week, the digital asset market exhibited a calm performance, with many tokens giving back much of their July gains. The global cryptocurrency market capitalization decreased by approximately 4%, indicating a weakening bullish momentum.
Overall Market Developments
Despite this decline, on-chain data reveals that high-volume investors are focusing on select altcoins. Substantial investments in cryptocurrencies such as Arbitrum (ARB), Chainlink (LINK), and Cardano (ADA) have attracted significant attention. This week, Arbitrum (ARB) was highlighted for its Layer-2 solutions. According to Santiment data, investors holding between 1 to 10 million ARB made collective purchases totaling 10 million ARB last week.
Notable Movements in Altcoins
Chainlink (LINK) has also garnered interest from large investors, with Nansen data showing that wallets valued over $1 million increased their LINK holdings by 25%. It was noted that "the intense interest from large investors indicates a growing confidence in the token’s short-term prospects." Cardano (ADA) also saw significant movements, as investors holding between 1 to 10 million ADA executed purchases of 60 million new ADA last week. However, the overall stagnant market led ADA’s price to move within a narrow range.
Price Expectations and Scenarios
Analysts suggest that if large investors continue purchasing ADA, the price could test the $0.89 resistance. However, if the buying momentum slows, ADA’s price may fall to $0.84. Santiment stated, "The steady appetite of large investors for purchases could initiate upward movements in ADA’s price."
Overall, despite the general market downturn, the accumulation by large investors in select altcoins hints at potential upward price movement. Analysts predict that both on-chain data and the positions of major investors will influence market trends in the coming period.
