The momentum of Chainlink (LINK) in February has largely subsided and the current performance of the crypto seems lackluster when compared with other large crypto assets. However, it would appear that the cryptocurrency is gearing up for some action in the coming weeks. Interestingly, new on-chain data has revealed a fresh accumulation pattern by LINK whales which could set up the resumption of a price uptrend.
According to blockchain tracker Lookonchain, there’s been an outflow of 831,160 LINK worth $16.72 million from crypto exchange Binance in the past two days into eight new private wallets.
It seems that whales are buying $LINK!
We noticed that 8 fresh wallets withdrew 831,160 $LINK($16.72M) 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
Whale transactions are largely monitored because they help to show the general sentiment among traders of a crypto asset. This recent accumulation into new wallets points to a lingering bullish belief in LINK in some large traders, despite the crypto currently having a weak momentum.
Chainlink went on an unprecedented price spike in late January and rolled into the month of February, allowing it to cross over $20 for the first time in over two years. Throughout this time, the crypto witnessed increased accumulation from whales and investors. Notably, this price spike saw Chainlink overperforming in the wider crypto industry, including Bitcoin. As a result, LINK shot up in market cap rankings to overtake Dogecoin, Avalanche, Tron, and Polygon.
LINK’s price journey has slowed down since the beginning of March, with the crypto primarily trading in an $18.15 to $20.82 range in the past seven days. Data from Coinmarketcap shows that LINK is down by 4.70% in the same timeframe, despite huge inflows into Bitcoin, Ethereum, and meme coins like DOGE and SHIB.
However, the crypto is not out of it yet, as large LINK movements hint at deliberate market moves rather than mere speculation. The emergence of new wallets accumulating substantial amounts hints at a strategic positioning for an incoming price increase.
Bitcoin has piggybacked on recent inflows into Spot Bitcoin ETFs to break through subsequent price levels and reach a new all-time high. On the other hand, Chainlink’s fundamentals and its massive utility in the DeFi, smart contracts, and NFT ecosystem point to consistent price increases. Chainlink is particularly poised to keep growing as these niches continue to gain adoption in the real world.
At the time of writing, LINK is trading at $19.98. In a bullish scenario, LINK could resume a positive momentum bolstered by significant whale activity, allowing it to break past a resistance level of $20.8. If this trend continues, the token could aim higher and break past $21.4 and potentially reach $28 this month.
Featured image from Pexels, chart from TradingView
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