Large holders of Stellar (XLM) appear to be in panic mode as the asset has slipped by over 10% in the last 24 hours. Within this time frame, Stellar whales have moved over 162.35 million XLM to the Coinbase exchange, a development that suggests possible dumping on the market.
Stellar whale activity sparks sell-off concerns
As per Whale Alert, a platform that tracks large holders’ transactions, this large volume of transfers to the exchange occurred in three tranches. The first transfer was of 54,180,378 XLM, worth about $12,067,815.
The other two transfers were 53,986,016 XLM valued at $12,024,524 and 54,180,378 XLM worth $12,133,131. All three transfers were initiated from unknown wallets to Coinbase. Two of the transactions occurred within the space of 60 seconds, while the third followed 20 seconds later.
The volume and direction of the movement suggest that these Stellar whales might be positioning to sell the asset. Such a development could increase the selling pressure that XLM is currently facing. The coin has slipped in value as investors offload it on the crypto market.
The asset crashed from a daily high of $0.2530 to hit a bottom price of $0.2223 as sell pressure impacted the outlook. As of press time, Stellar managed a slight uptick and exchanged hands at $0.2242, which represents a 10.61% decline within the period.
Despite the price plunge and whale action, market participants are still trading XLM in large volume. The trading volume has jumped by 58.36% to $291.64 million. This indicates that retail investors could see this as a buy opportunity.
Over the next couple of hours, more whale Stellar transactions were spotted on Coinbase, signaling an obvious reorganization.
With time, this XLM shift could reveal if the whale action could trigger more concerns and reverse the trading metrics from green to the red zone.
Stellar loses ground in market rankings
In the broader Stellar ecosystem, there are concerns about the performance of XLM. Many had anticipated the coin would ride on the legal clarity provided by XRP’s legal battle to appreciate in utility.
However, neither XRP nor XLM has improved much in value since then.
In a recent move that stunned the community, privacy token Zcash (ZEC) flipped XLM in market capitalization. Zcash is now ranked 12th, while Stellar has slipped to 17th place in the market rankings, according to CoinMarketCap.
While Zcash appreciated by 126.5% in the last 30 days, Stellar has shed 27.98% within the same time frame. The continued bearish momentum of XLM on the market remains a source of worry for investors in the asset.
Source: https://u.today/162346772-stellar-xlm-stun-coinbase-in-one-minute-whats-happening
