Chainlink (LINK)’s momentum in February has largely waned and the crypto’s current performance appears lackluster when compared to other major crypto assets. However, it looks like the cryptocurrency is gearing up for some action in the coming weeks. Interestingly, new data on the chain has revealed a new accumulation pattern of LINK whales, which could trigger the resumption of a price uptrend.
According to blockchain tracker Lookonchain, there has been an outflow of 831,160 LINKs worth $16.72 million from crypto exchange Binance to eight new private wallets in the past two days.
Looks like whales are buying $LINK!
We noticed that 8 new wallets withdrew 831,160 $LINK($16.72 million) from #Binance in the past 2 days.
Address:https://t.co/bkikjTpUtyhttps://t.co/DaBt99fo8Ohttps://t.co/h8fjMdXiU4https://t.co/vcBkwRMUJMhttps://t.co/sD9YDQd4Sj… pic.twitter.com/77Y9RqF3t6
— Lookonchain (@lookonchain) March 9, 2024
Chainlink whales resume accumulation trend?
Whale trades are monitored largely because they help reflect the general sentiment among traders about crypto assets. This recent accumulation in new portfolios indicates continued bullish belief in LINK among some large traders, despite the crypto currently having weak momentum.
Chainlink went on a unprecedented price increase at the end of January and spilled over into the month of February, pushing it above $20 for the first time in more than two years. During this time, the crypto witnessed increased accumulation by whales and investors. Notably, this price spike saw Chainlink outperform the broader crypto industry, including Bitcoin. As a result, LINK shot up in the market capitalization rankings Overtaking DogecoinAvalanche, Tron and Polygon.
LINK market cap currently at $11.6 billion. Chart: TradingView.com
LINK’s price trajectory has slowed since early March, with the crypto trading mainly between $18.15 and $20.82 over the past seven days. Data from Coinmarketcap shows that LINK is down 4.70% in the same time frame, despite massive inflows into Bitcoin, Ethereum, and meme coins like DOGE and SHIB.
However, crypto is not out of the woods yet, as major LINK movements suggest deliberate market movements rather than just speculation. The emergence of new wallets accumulating significant amounts of money indicates strategic positioning for an incoming price increase.
Chainlink to rival Bitcoin?
Bitcoin has ridden the recent inflows in Discover Bitcoin ETFs to break subsequent price levels and a new record ever. On the other hand, Chainlink’s fundamentals and its immense utility in the DeFi, smart contracts, and NFT ecosystem point to consistent price increases. Chainlink is especially poised to continue growing as these niches continue to gain acceptance in the real world.
At the time of writing, LINK is trading at $19.98. In a bullish scenario, LINK could resume positive momentum supported by significant whale activity, allowing it to breach a $20.8 resistance level. If this trend continues, the token could aim higher and break past $21.4 and possibly reach $28 this month.
Featured image from Pexels, chart from TradingView
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