Santiment is warning investors about a surge in whale activity in Optimism and Chiliz, which might be a result of manipulation.
The Whales might be looking to capitalize on investor FOMO to trigger price drops.
Optimism is down 8% in a day after reaching $3 and needs to hold above $2.275 to avoid further decline.
Chiliz is holding steady at $0.123 but faces an unpredictable breakout in either direction, over the coming days.
Smaller investors might want to be cautious with crypto over the next few days, especially Optimism and Chiliz
The crypto market has been green this week, considering the Ethereum spot ETF approvals, and how the altcoin market is making active moves against Bitcoin.
In the middle of this "sea of greens", the crypto whales are swimming wildly with every passive second, and their activity on the likes of Ethereum, BNB, Solana and Cardano is sending ripples throughout the market.
However, while two of these major altcoins have caught the eye of the big players, Santiment warns that shrimp and small fish might want to be careful when swimming with the whales.
Here’s why you should keep an eye out for Optimism (OP) and Chiliz (CHZ).
According to insights from a new tweet by Santiment, both Optimism and Chiliz saw a surge in whale activity on 20 May.
Be careful with Optimism and Chiliz
Santiment notes that while the crypto market has been performing relatively well in terms of whale activity, such a sudden surge in whale interest typically means that the whales are looking to capitalize on the FOMO of retail investors, and collect liquidity with a sudden price drop.
In other words, when whales start moving this way, the calm waters might start to churn, swallowing up the smaller investors in the whirlpool.
In particular, Santiment notes that Optimism had a staggering 392 whale transactions on 20 May, while Chiliz had 46 of these transactions, with investors moving around $100,000 or more.
At the time of writing, OP is trading at around $2.7, and is already down by around 8% over the last day, despite being up by 16% in the last seven.
Optimism’s price outlook
The interesting part about Optimism’s chart is that we can see clearly, where the whales dumped or started to sell.
Optimism started its descent from a rejection around $3 and is now in the middle of a decline.
We can expect the cryptocurrency's bulls to retain their control if OP doesn't break below $2.275.
In the meantime, the cryptocurrency is approaching a retest of its 25-day EMA around $2.63, where the bulls should be able to hold the fort.
Chiliz on the other hand, is holding its ground at $0.123, with a current decline of around 2% in the last 24 hours, and an 8% price increase in the last week.
Chiliz’s price outlook
Chiliz, on the other hand, is trading within a short to medium-term symmetric triangle and is about to enter a squeeze in a few days.
Investors are expected to keep in mind that symmetric triangles are neutral formations and that a break in either direction is possible, given the neutral positioning of the RSI on the daily chart.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.