Altcoin Sell-Off Signal? Large Transfers to Exchanges Spark Bearish Concerns

• 0.20% of stETH supply along with 0.21% of WLD supply and 0.14% of RSR supply moved to CEXs.
• The move suggests a possible sale by investors, taking advantage of the recent price rallies. 
• The total altcoin market cap, except BTC and ETH, hit a high of $1.03 trillion, hitting a resistance wall.

A large amount of altcoins are moving to centralized exchanges, a potentially bearish sign for crypto market participants. Blockchain analysis platform Santiment highlighted the developments for leading altcoins, including Mantra (OM), Worldcoin (WLD), Movement (MOVE), stETH, Reserve Rights (RSR), and Maker (MKR). 

Large inflows of altcoins to exchanges typically indicate that holders may be looking to sell. This can lead to increased selling pressure and potential price declines. There could be multiple reasons for this transfer, including profit-taking, fear of further declines, or macroeconomic events affecting the broader crypto market. 

According to a post on X (formerly Twitter) by Santiment, a substantial 0.21% of WLD supply moved to Bybit along with 0.20% supply of stETH and OM being moved to Bybit and Binance, respectively. Also, 0.14% of the RSR supply went to Binance alongside 0.12% supply of MKR to Coinbase and 0.08% supply of MOVE was sent to KuCoin. 

Related: Bitcoin & Altcoin Price Trends: What’s Next for XRP, ETH, SOL, and JUP?

It’s worth noting that the opposite is also true. If altcoins are moving off exchanges into private wallets, it usually suggests accumulation and long-term holding, often seen as a bullish signal. 

Recently, the focus on the altcoin market has increased as market leader Bitcoin (BTC) trades in the range of $90,000 and $109,000. According to CoinMarketCap data, the total market cap of the digital asset space stands at $3.55 trillion with BTC dominance standing at 58.5%. 

Altcoin Market Cap: Bullish or Bearish?

The altcoin market cap chart below excludes Bitcoin and Ether. The Relative Strength Index (RSI) for the daily chart by TradingView below reads a value of 51.02. This suggests that the bulls have taken control of the altcoin sector. The gradient of the line suggests higher valuations for altcoins in the coming days. 

Related: Altcoins Surge as Bitcoin Holds Above $100K—Can SOL, $TRUMP, and XRP Keep Up?

However, the MACD indicator confirmed a bearish divergence on the altcoin daily chart a few days ago, and since then, the MACD histogram also turned bearish. But the intensity of the bears has lessened over the past few days as buyers take advantage of lower prices.