The cryptocurrency market remains under pressure following the recent FOMC meeting. The Federal Reserve made its third interest rate cut of the year by 25 basis points. However, the tone of the conference was more cautious than expected. Inflation risks and signals of slower growth kept prices of most major assets low. Despite this pullback, whales are quietly increasing their positions in specific cryptocurrencies.
Purchases by large players have focused on three tokens that show early signs of a rebound or breakout formation.
Bullish cryptocurrencies after interest rate cuts: Aster (ASTER)
The price of Aster fell nearly 4% in the last 24 hours, deepening monthly losses to about 14%. However, whales are acting contrary. In the last day, their holdings increased by 7.35%. This is about 4.59 million ASTER, currently worth around $4.22 million. Interestingly, ASTER is one of the rare coins that whales bought both before and after the FOMC decision.
These purchases stand out as the chart shows a technical formation that could explain why whales have emerged.
Between November 3 and December 11, the price of ASTER formed a higher low, while the relative strength index recorded a lower low. The relative strength index measures the strength of buying and selling. When the price rises and the relative strength index falls, a hidden bullish divergence appears. This usually signals a weakening of selling pressure, even if the chart remains weak.
Aster showed the same pattern between November 3 and December 1. At that time, the divergence of this cryptocurrency triggered a rebound of nearly 22%. The current situation looks similar, and whales may be preparing for a similar move.
Meanwhile, for the bullish trend to be maintained, Aster needs to close a daily candle above $1.08. This is the level at which the last rebound of the cryptocurrency stopped. If the price breaks this line, the target could be the level of $1.25 and $1.40, according to the next resistances.
However, if the setup weakens, the downward direction will become obvious. A daily close below $0.88 will invalidate the bullish structure and weaken the conviction of the whales. Below this level, ASTER may retest the level at $0.81 or lower.
Whales are accumulating Maple Finance (SYRUP)
Maple Finance (SYRUP) dropped by about 2.2% in the last day and nearly 40% over the month. Despite this weakness, cryptocurrency whales continue to build positions. Typical whale portfolios increased their holdings of this cryptocurrency by 3.86% in the last 24 hours. Meanwhile, mega whales added 4.9%, reaching a total of 1.1 billion SYRUP.
This jump of 4.9% means that mega whales bought about 51.4 million SYRUP, currently worth around $14.4 million. Additionally, fresh purchases appeared just after the slightly hawkish tone from the FOMC, making the move all the more intriguing.
Whales hope that support at $0.23 will hold. SYRUP has tested this level multiple times since early December. However, there has not been a single breakout, which is why whales may have engaged. The token moves in a wide range between $0.23 and $0.31, with the last support test occurring on December 4.
Additionally, the dynamics of the cryptocurrency provide a short-term impulse. Between December 9 and 11, the price formed a lower low, while the relative strength index formed a higher low. In lower timeframes, this usually indicates a rebound even in a strong downward trend.
If a rebound occurs, the first target is the level of $0.31. This is the ceiling that blocked all rises since December 6. A clear breakout above $0.31 opens the path to levels of $0.39 and $0.48.
On the other hand, when the price of SYRUP drops below $0.23, it weakens the whales' conviction. Breaking this level reveals a downward trend and likely cancels the current setup.
Bullish cryptocurrencies that whales are hunting: Pudgy Penguins (PENGU)
Pudgy Penguins dropped nearly 10% in the last 24 hours, but cryptocurrency whales are still buying at the low. Whale portfolios increased their holdings by 5.25%, totaling 1.18 billion PENGU. This increase means that whales added about 58.9 million PENGU.
The top 100 addresses, or mega whales, are also regularly accumulating. Their holdings increased by 2.85% in the last day, totaling 76.95 billion PENGU. This translates to an additional 2.13 billion tokens, worth nearly $21.3 million at today's rate. For a cryptocurrency that just experienced a double-digit decline, such synchronized buying action from whales and mega whales is rare.
The PENGU price chart shows why whales continue to accumulate. Pudgy Penguins is forming an inverted head and shoulders pattern on the daily timeframe. This is a bullish trend-reversing setup that often appears when declines lose momentum. The neckline is at $0.014 and as it rises, it signals an improving structure favorable for buyers before a breakout occurs.
Whales may play for this breakout. If PENGU closes above $0.014, the height of the setup indicates a movement of about 35%, targeting around $0.019. This is likely why large portfolios are buying despite the price weakness.
However, this cryptocurrency setup, like any other, has clear levels of negation. If Pudgy Penguins falls below $0.010, the setup loses strength. A drop below $0.009 completely invalidates the pattern and cancels the bullish forecast. For now, as long as PENGU remains above $0.010, the inverted head and shoulders setup is active. Therefore, it seems that cryptocurrency whales are ready for a possible breakout.
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