Written by Hazel J. Greene, Senior Analyst

Over the past day, 1inch has emerged as one of the top-performing digital assets, surpassing many key players in the market. Although the rally continued into Monday morning, an alarming whale transaction detected on the blockchain has cast a shadow of uncertainty.

Lookonchain, an on-chain data tracker, recently highlighted a transaction worth noting that could potentially impact the current price surge of 1inch. The transaction involved a whale moving a substantial sum of 7 million 1inch tokens.

While whales commonly relocate their holdings, the destination of this particular transaction creates cause for concern. The transaction reveals that the whale transferred the 7 million 1inch tokens, valued at $3.88 million during the transaction, to Binance.

The move to a centralized exchange like Binance typically suggests an intention to sell, as these platforms offer deeper liquidity and lower fees. Consequently, the transfer of such a significant amount of tokens to Binance implies that the whale may be looking to offload their coins.

If the whale initiates selling, it could exert significant selling pressure on 1inch, potentially stalling the ongoing rally or even triggering a price reversal. As of writing, the price correction has already begun, indicating that the whale may be in the process of selling their tokens. The initial surge that drove 1inch up by over 50% to approximately $0.6 in the early hours of Monday has now dissipated, leaving only a 6% gain at the current price of $0.44.

The incident sheds light on the influence that whales can exert on the market, particularly when their holdings are considerable. It is worth noting that the whale likely capitalized on the price surge to secure profits.

However, if buyers can create sufficient demand to absorb the supply flooding the market, 1inch may be able to resume its rally. Alternatively, if demand fails to counterbalance the selling pressure, the price is likely to continue falling, potentially returning to its starting point for the day.

The recent whale transaction raises concerns for the ongoing 1inch price rally. Investors and enthusiasts will undoubtedly closely monitor the market to gauge its resilience and potential for recovery.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.