Definition ∞ A whale distribution shift describes a notable change in the holdings of large cryptocurrency investors, often termed “whales.” This involves these significant holders either selling off substantial portions of their assets or moving them to exchanges. Such a shift can signal a change in their market outlook or an intention to liquidate positions. It often precedes periods of increased market volatility.
Context ∞ On-chain analysts closely monitor whale distribution shifts as a potential indicator of impending market movements. News reports frequently highlight these shifts, interpreting them as signals of potential downward price pressure or profit-taking. Understanding these movements is crucial for assessing market sentiment and predicting short-term price action.
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