In December, investors saw substantial gains in various cryptocurrencies, with some assets experiencing price surges of 5 to 10 times within weeks. Experienced investors, however, understand the necessity of taking profits at some point. Currently, alarms are ringing for a popular altcoin on the Binance exchange, as there is a potential sell-off worth at least $11 million.
On-chain data indicates that a whale has transferred IMX Coin worth $11.8 million to the Coinbase exchange. If sold, this would result in a net profit of approximately $5.7 million. Since the market rally in October 2023, IMX has been among the top-performing cryptocurrencies, soaring by 400%.
The whale’s wallet, identified as 0x3f2d, initially moved over 5.15 million IMX tokens to a new wallet, 0x48f3, which then transferred these tokens to a Coinbase wallet. Such a move by a profit-taking whale to a high-volume centralized exchange typically indicates an intention to sell.
The $11.8 million worth of IMX Coin is not a negligible amount, especially since mid-year when major market makers left the crypto scene, leading to weak volumes and thin order books for altcoins. For example, the daily trading volume for IMX Coin in USDT pairing on Binance is just $15.9 million, which means that even a few million dollars in sudden sales could significantly impact the price.
According to Spotonchain, the whale accumulated these IMX tokens between February 3, 2022, and November 5, 2023, at an average price of $1.191. With the current satisfactory prices, there’s a possibility of cashing in on the profits. Looking at the overall reserves of IMX Coin on exchanges, there has been a decrease of over 500,000 IMX tokens in central exchanges’ balances.
While the last 30 days showed a decrease, more recent data indicates a shift towards net inflows, likely due to investors preparing for a potential “sell the news” event in January after an impressive IMX rally. Despite this, as long as the significant demand zone between $2.26 and $2.32 remains unbreached, a major drop may not occur.