How to Profit from Wallet Analysis

Our client shared a case study on how he was able to profit using our product – bulk wallet analysis

Analyzing assets from my watchlist, I noticed 1INCH approaching its global support zone. Observing the overall weakness of cryptocurrencies, I was looking for wallets that were withdrawing assets from one of the most liquid centralized platforms – Coinbase. I studied wallets with large withdrawals from CEXs through bulk wallet analysis and the service's functionality. According to my calculations, 1 owner withdrew a token amounting to ~ $2.15M through 5 of his wallets on September 3rd. I bought the asset, following the actions of large capital. The next day, the asset showed momentum, bringing me a profit of +25% or $2.75K in a day.

How to properly analyze cryptocurrency charts

Against the backdrop of overall altcoin weakness, 1INCH approached its global support level:

In the past, the asset has reacted from these levels. For example, in September 2023, the altcoin showed momentum leading to a +220% increase:

TIP: 

Support levels – These are areas on the chart where the asset might receive a buyer's reaction, i.e., a bounce. This happens because orders to buy the asset are placed at these levels.

For example, 1INCH has reacted from the global support zone three times from August 2023 to September 2023:

Global support zone – This is a level that affects the overall picture of the asset, and breaking it can change the direction of price movement.

Local support zone – This is a level reflecting recent price movements and helps understand short-term changes.

How to analyze large withdrawals from exchanges

In the blockchain, I looked for large withdrawals from Coinbase to wallets where the incoming amount started at 500K in 1INCH tokens. As a result, I obtained the following data: