The Reliability of Whale Alerts in Predicting Crypto Price Movements

A study by Presto Research questions the reliability of Whale Alerts as trading signals, revealing that large exchange deposits have weak predictive power for price declines in cryptocurrencies like Bitcoin, Ethereum, and Solana. The analysis indicates that while on-chain metrics can provide insights into blockchain activity, they fall short in forecasting short-term price movements, emphasizing the need for cautious interpretation of such data in trading strategies.

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