What are crypto Whales buying to seek profit in August?

July marked a historic milestone for the crypto market. Trading activity reached record levels, pushing the total market capitalization globally over the $4 trillion mark for the first time in history.

However, this bullish price surge has also triggered a wave of profit-taking, leading to a short-term correction for many digital assets at the end of July. Nevertheless, large holders — often referred to as "whales" — show no signs of retreating. Instead, they are rotating their capital into tokens that they believe will achieve growth in August.

Cardano (ADA)

Cardano (ADA) – a token belonging to the layer-1 platform (L1) is emerging as a top choice for whales in the quest for profit in August. On-chain data shows that since July 24, large wallets holding from 100 million to 1 billion ADA have accumulated an additional 270 million tokens, equivalent to over 210 million dollars at the current market price.

Distribution of ADA supply | Source: SantimentThis accumulation period occurs against the backdrop of ADA's price adjusting, decreasing from the cycle peak of $0.93 on July 21 to $0.78 at the time of writing. Despite the price adjustment, the ongoing interest from high-value investors indicates a strong long-term belief in Cardano's potential.

If this accumulation trend continues and can offset the increasing supply, the price will stabilize and halt the downward momentum. In that scenario, this coin could reverse into an uptrend and climb to $0.84.

ADA Price Analysis | Source: TradingViewOn the other hand, if demand from whales decreases, ADA may continue to decline, breaking the support level of 0.76 dollars and falling to the level of 0.66 dollars.

Tron (TRX)

Tron (TRX) has been moving in a parallel ascending channel since June 22, recording a price increase of 24%. As of July 29, this altcoin reached a six-month peak of $0.35, driven by a growing wave of accumulation from whales.

This is clearly reflected in the net cash flow index of large holders, with an increase of over 2,600% in the past month, according to data from IntoTheBlock.

Net cash flow from large TRX holders | Source: IntoTheBlockThe net cash flow index of large holders measures the difference between the number of tokens that whales buy and sell over a certain period.

When this index records a significant positive increase, it means that wallets holding more than 1% of the circulating supply of the asset are accumulating more coins. This indicates a growing confidence from key holders and suggests that the price of TRX will continue to rise if the demand from this group is maintained.

In that scenario, TRX could extend its upward momentum and reach the 0.35 dollar mark.

TRX Price Analysis | Source: TradingViewHowever, if profit-taking activities increase again, this bullish outlook may be invalidated. If market demand weakens, the price will plunge below the $0.3 mark and trade around $0.29.

Solana (SOL)

The 5% price correction of Solana (SOL) last week has created a buying opportunity for whales, as many expect a strong recovery to take place in August.

To clarify, SOL has been on a downward trend since reaching a peak of 206.18 dollars on July 22. At the time of writing, SOL is trading at 177 dollars.

However, whale wallets holding over 1 million dollars worth of SOL remain unfazed. In fact, they have viewed the recent price drop as a buying opportunity, increasing their holdings to 6.4% over the past week.

The activities of SOL whales | Source: NansenIf this accumulation trend continues into August, it could reignite optimistic sentiment. In the event that retail traders also follow suit, the price of SOL may continue its upward trend and attempt to surpass the $190 mark.

SOL Price Analysis | Source: TradingViewConversely, if the selling pressure continues, SOL may slip below the support area of 180 dollars and test a lower level around 176.33 dollars.

Minh Anh