Whale Accumulation Signals Confidence Despite Altcoin Volatility and Short Interest

Whales increased their holdings in several altcoins during the second week of October 2025, signaling strategic accumulation amid market volatility. World Liberty Financial (WLFI) emerged as a focal point, with large investors adding 4.82% to their positions, pushing their total holdings to 20.18 million tokens . This followed a 12% price decline in the prior week, with WLFI trading near $0.21. Whale activity contrasted with weaker retail buying, as indicated by a declining Money Flow Index (MFI), suggesting institutional confidence in the token's potential rebound BeInCrypto^[2].

Pepe (PEPE) also attracted whale attention, with addresses holding 10,000–100,000 tokens collectively adding 8 million tokens over the week. At $0.00000932, PEPE had fallen 5% in seven days, but whale accumulation at lower levels hinted at positioning for a potential short-term rebound .

The Sandbox (SAND) saw notable whale activity, with large investors holding 100 million–1 billion tokens increasing their balances by 20 million tokens. Despite trading sideways, the metaverse token's price action aligned with bullish on-chain metrics, including a rising Chaikin Money Flow (CMF) and increased receiving addresses outpacing sending addresses . This followed a 45% rally in November 2025, driven by a partnership with Gucci and aggressive whale buying .

Technical analysis highlighted critical support levels for WLFI at $0.18, reinforced by liquidation clusters and chart patterns. A break above $0.20 could target $0.22, while a drop below $0.18 risks further declines to $0.15 BeInCrypto^[2]. For SAND, breaking $0.50 could catalyze gains toward $1, though resistance at $0.49 posed a near-term challenge .

Whale activity in WLFI was supported by a deflationary burn proposal, which allocated liquidity fees to buybacks and burns. Early votes showed 99% approval, with projected burns potentially reaching 1 million tokens weekly Cryptopolitan^[4]. This structural shift aimed to boost WLFI's valuation by reducing supply and increasing demand Cryptopolitan^[4].

SAND's rally was further bolstered by ecosystem developments, including new Sandbox Improvement Proposals (SIPs) and Alpha Season 4's $2.5 million reward pool. Whale net flows shifted from a net outflow of $2.2 billion to a net inflow of $8.2 billion in late November, reflecting renewed institutional interest .

While whale accumulation typically signals bullish momentum, risks remained. WLFI's derivatives market showed heavy short interest, with $30 million in short positions stacked against $4 million in longs BeInCrypto^[2]. For SAND, a drop below $0.35 could trigger support from 20,050 holders who purchased at $0.41 .