Analysts note a significant rise in whale activity in Chainlink, highlighting token accumulation despite recent price fluctuations.
Rise in Whale Activity
A Chainlink whale has withdrawn 100,000 LINK tokens valued at $2.95 million from Binance in the past 24 hours. Over three days, the same whale pulled 529,999 LINK tokens worth $15.5 million, demonstrating increased interest from large holders. Data from IntoTheBlock indicates that whale activity surged by 41.5%, signaling growing confidence among Chainlink's largest investors. These whales appear to be accumulating LINK instead of selling, suggesting potential bullish momentum in the near term.
LINK Price Pressure
Despite the uptick in whale interest, Chainlink’s price has seen a modest pullback. The token recently traded at $28.22, marking a 3.02% decline over 24 hours. LINK's price had previously reached a high of $30.49 before dropping to $27.49 amid broader market adjustments. However, LINK's overall monthly performance remains positive, reflecting resilient bullish sentiment among market participants. The token continues to show strong support at key levels, which could pave the way for a potential recovery.
Optimism Due to Supply Scarcity
A notable rise in Chainlink’s scarcity is contributing to market optimism. The supply-focused SFR ratio for LINK has jumped from 0 to 1618.48, indicating a tightening of available tokens in circulation. Consequently, the reduced supply could fuel a price rebound if demand persists. Analysts suggest that if LINK maintains its current trajectory, it could test the $30 resistance level again, potentially extending gains to $32.2 in the coming sessions.
The growing whale interest and rising scarcity signal a bullish outlook for Chainlink, even as short-term pressures persist. Accumulation by large holders suggests confidence in LINK's long-term potential.
