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Shrimpers are sweeping BTC off the market faster than at the peak of the 2017 bull market

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In cryptocurrency slang, shrimpers are holders who have less than 1 BTC in their wallet. Right now, the number of shrimpers in the market is growing as fast as possible. Even at the peak of the historic bull market in late 2017, they weren’t arriving in such numbers.

Shrimp are near the bottom of bitcoin’s joke food chain, just above plankton. The lowest kind of cryptocurrency organisms are holders with less than 0.05 BTC. This is not the only classification of bitcoin holders, but it gives an idea of the size and importance of the various market participants.

Bitcoin shrimp are gaining ground

Previously, the number of small bitcoin addresses is steadily growing despite a deep correction in the market. The number of wallets with balances of over 0.01 BTC and over 0.1 BTC has been steadily increasing since early 2021.

However, this trend accelerated in mid-June 2022. During previous market cycles, such dynamics in the bitcoin network indicated a bull market acceleration. In contrast, during major market corrections, onchain analysis generally indicated a slight increase, stagnation, or even a decrease in the number of addresses with a balance of less than 0.1 BTC.

Well-known analyst in cryptocurrency circles @WClementeIII tweeted a 90-day graph of changes in the number of coins in the hands of small holders (no more than 1 BTC in the wallet). It shows the strong growth of bitcoins in shrimp wallets. The current values have left behind the levels of late 2017, when the market was dominated by bullish sentiment and the BTC exchange rate reached an all-time high of $20,000 at the time.

During that time, BTC managed to plummet to $69,000, fall 70% in price, and return to the landmark level of 2017. Bearish sentiment and extreme fear are in stark contrast to the euphoria and exorbitant greed that reigned over the market in late 2017. And yet the shrimpers are behaving just as they did then. Moreover, they are buying bitcoin even more willingly, believing that now is the right time to do so.

Why shrimp are buying BTC

The classic market axiom is that “retail is never right.” With 2017, it’s clear: Small investors were buying at the peak and big whales were dumping coins. They sold at the best possible time. But the situation is different now. Shrimp accumulates bitcoin in large quantities after it has already lost 70% of its value.

But there is a third possibility: the increase in the number of holders with a balance less than 1 BTC, does not indicate an influx of small private investors. It’s possible that people are simply splitting their investments, opening many wallets with small balances. This was pointed out by another well-known crypto analyst @woonomic. He wrote:

“Keep in mind that such data on the number of holders is extremely unstable and tends to be overly optimistic on short intervals. It takes a couple of years for the statistics to settle down. For example, it is assumed that small transactions are made by new people and then it turns out that they belong to an existing investor who has more than 1 BTC.”

Cryptocurrency podcast host @VentureCoinist, thinks the influx of shrimp is still a sign of an impending downturn.

“I’ll pretend I didn’t see what happened the last time this metric went up this much.”

Finally, another user @fusillifadi, posted data that seems to support Clemente’s assumption of organic shrimp growth. Citing data from cooper.co, he provided a graph of the average daily growth rate of wallets with balances under 1 BTC.

Since the end of 2021, year, we have seen a clear trend of shrimp growth that can only be compared to 2017. Although the last period of 2017 saw a much larger increase, the current numbers are ahead of the trend recorded in 2018-2021.

Shrimp buy bitcoins mostly from miners. In 2017, 49% of bitcoins sold by miners went to wallets with a balance of less than 1 BTC. In 2022, that figure rose to 75%. Other onchain statistics confirm the surrender of miners. Thus, we get the answer to the question of who supplies bitcoins to the shrimpers.

Cryptocurrency

Ethereum Foundation, Whales, and Hackers: What’s Driving the ETH Sell-Off?

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TL;DR

  • Whales, hackers, and the Ethereum Foundation wallets moved over $500M in ETH through large sales and withdrawals.
  • Ethereum transfers rose to 4.6M ETH, nearing the monthly high of 5.2M recorded in July.
  • Staking inflows hit 247,900 ETH, the highest in a month, locking more supply from trading.

Large Withdrawals and Whale Activity

Ethereum (ETH) has seen heavy movement from major wallets over the past few days. On-chain data from Lookonchain shows a newly created wallet pulled 17,591 ETH, worth $81.62 million, from Kraken in just two hours. 

Over three days, two new wallets withdrew a combined 71,025 ETH, valued at $330 million, from the exchange.

One of these wallets, address 0x2A92, has withdrawn 53,434 ETH, worth $242.34 million, in two days. This includes a recent purchase of 30,069 ETH, valued at $138.46 million, during a market drop.

Major ETH Holders Offload Millions Amid Price Rally

In contrast, several separate entities have been disposing of some ETH holdings. A wallet tied to a hacker address 0x17E0 sold 4,958 ETH for $22.13 million at $4,463, securing a profit of $9.75 million. Earlier this year, the same address sold 12,282 ETH at $1,932 and later bought back part of the amount at higher prices.

A different whale sold 20,600 ETH for $96.55 million over the past two days, generating a profit of more than $26 million after holding the position for nine months. 

Meanwhile, an Ethereum Foundation-linked wallet, 0xF39d, sold 6,194 ETH worth $28.36 million in the last three days at an average price of $4,578. 

Recent sales from the same wallet included an additional 1,100 ETH and 1,695 ETH for over $12.7 million combined.

Network Activity on the Rise

CryptoQuant data shows Ethereum’s total tokens transferred have been climbing since August 9. After ranging between 1 million and 3 million ETH through late July and early August, transfers have risen to 4.6 million ETH, approaching the monthly high of 5.2 million recorded in mid-July. This increase has occurred alongside a price rally from about $3,400 to $4,600.

Ethereum (ETH) Tokens Transferred (Total)
Source: CryptoQuant

Interestingly, staking inflows generally stayed between 20,000 and 80,000 ETH per day over the past month. On August 14, inflows jumped to 247,900 ETH, the highest in the period. 

At the time, ETH was trading near $4,600. Large staking deposits reduce the amount of ETH available for immediate trading, as staked coins are locked for a set period.

Ethereum (ETH) Staking Inflow Total
Source: CryptoQuant

In the meantime, ETH trades at $4,647 with a 24-hour volume of $68.25 billion, down 2% on the day but up 19% over the week.

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Cryptocurrency

Massive DOGE Whale Activity Hints at $1 Breakout

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TL;DR

  • Whales bought two billion DOGE this week, lifting their combined holdings to 27.6 billion coins.
  • A single 900M DOGE transfer worth $208M to Binance drew attention to large exchange movements.
  • DOGE broke key resistance, with momentum building for a possible push toward the $1 price mark.

Price and Market Moves

Dogecoin (DOGE) traded at $0.23 at press time, slipping 4% over the past day but still showing a 2% gain for the week. Daily turnover came in at about $6.18 billion. 

Meanwhile, the broader crypto market saw over $1 billion in liquidations. Hotter-than-expected US Producer Price Index data pushed traders to scale back expectations of a near-term Federal Reserve rate cut. DOGE had roughly 290,500 coins liquidated during the sell-off.

On the two-week chart, analyst Trader Tardigrade notes that DOGE has cleared a downward-sloping resistance line after completing what appears to be a “wave V” in an Elliott Wave sequence. Similar setups in the past, where prolonged declines stayed within falling channels before breaking higher, have been followed by sharp rallies.

Momentum gauges are also turning up. The Stochastic RSI, which had dropped into oversold territory, is now heading higher. Previous reversals from this zone have coincided with sustained upward moves. The current formation points to a possible run that could carry DOGE past the $1 mark.

Heavy Whale Buying and Large Transfers

As reported by CryptoPotato, blockchain data shows large investors have added two billion DOGE in the past week, spending just under $500 million. That brings their holdings to about 27.6 billion coins, or 18% of the supply. The buying streak has prompted speculation within the community. 

Recently, Whale Alert flagged a 900 million DOGE transfer worth about $208 million into Binance. The tracking indicates that it originated from a wallet connected to the exchange, likely as an internal activity. The address involved holds 2.88 billion DOGE, one of the largest balances on the network.

Ali Martinez also reports that transactions above $1 million reached a one-month high, with activity building since early August and peaking as DOGE traded at $0.25.

Sentiment Building

Analyst Gordon described the current setup as “a nice bit of consolidation” before a potential breakout, adding, 

“This will be one of the first coins normies FLOCK to & the pump will be MASSIVE.”

With whale accumulation rising, high-value transfers increasing, and a bullish technical pattern in play, DOGE is positioned for a potential push toward $1 if momentum holds.

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Cryptocurrency

Ripple Price Analysis: XRP at Risk as Key Support Levels Could Trigger Sharp Drop

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XRP has recently entered a consolidation phase after a strong rally earlier this summer, with the price action now hovering around key resistance levels on both its USDT and BTC pairs. Yet, while momentum has slowed, the charts still indicate a generally bullish structure, with multiple key support levels remaining firmly in place.

Technical Analysis

By ShayanMarkets

The USDT Pair

On the XRP/USDT daily chart, the price is currently trading near the $3.10 mark, facing a strong resistance zone around $3.40. This follows a breakout above the $2.70 range in July, which has now flipped into a support area.

Both the 100-day and 200-day moving averages are also trending upward and recently formed a bullish crossover around $2.45, reinforcing the medium-term bullish sentiment. If the $3.40 resistance breaks, a push toward the critical $4.00 range becomes likely.

However, the RSI hovering near the neutral 50 level suggests a lack of strong momentum for now, meaning a short-term pullback into the $2.80 support zone is still possible.

This zone will be key for maintaining the bullish structure. Losing it could open the door for a deeper correction toward the 200-day moving average located around the $2.40 mark. Yet, as long as the price stays above the moving averages, the broader trend remains bullish.

The BTC Pair

Looking at the XRP/BTC chart, the pair has recently pulled back after hitting the 3,000 SAT resistance, with the price currently around 2,600 SAT.

This follows a clean breakout above the long-term descending channel and a successful retest of its upper boundary, which coincided with the 200-day moving average and the 2,400 SAT support zone. This confluence remains a key bullish technical factor, as holding above it could attract renewed buying pressure.

That said, RSI levels around 48 show that momentum has cooled after the sharp July rally, meaning XRP may continue ranging between 2,400 SAT and 3,000 SAT in the near term. A decisive close above 3,000 SAT would likely open the path to the 3,400 SAT zone, while losing 2,400 SAT could shift the bias back toward 2,000 SAT support. For now, the structure still favors the bulls as long as higher lows remain intact.

 

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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