- Chainlink is seeing intense whale activity as the token’s social sentiment is growing.
- The price action in the past 24 hours has matched this whale activity.
Decentralized blockchain oracle network Chainlink (LINK) is now experiencing increased on-chain activity. This move is primarily driven by the increased whale activity it has recorded over the past six weeks.
Chainlink Whales Accumulate 8.5M LINK
According to Santiment data, large crypto investors (whales) accumulated 8.5 million LINK tokens valued at approximately $108.8 million at the current market price. For context, whales are investors holding at least $100,000 of any cryptocurrency in their wallets. They have an influential position in the market as they can determine a cryptocurrency’s price movement.
Chainlink’s recent price breakout has come on the backs of whales accumulating over 8.5M LINK in the past 6 weeks. Our featured article breaks down the enthusiastic community, spikes in on-chain activity, & more for the #14 ranked cryptocurrency! https://t.co/SEE0gMKSHY pic.twitter.com/E26cc9qUSd
— Santiment (@santimentfeed) September 25, 2024
Santiment revealed that whale transactions for $100,000 and $1 million surged in September. Notably, cumulative holdings of these wallets increased from 685.5 million LINK in mid-August to 694 million by late September, representing an 8.5 million LINK increase.
This surge in whale activity indicates that Chainlink is receiving attention from high-net-worth individuals and institutional investors. Their increased interest has triggered a bullish LINK momentum, with the token currently trading as the 14th-largest digital asset by market capitalization.
Chainlink’s recent move is not surprising, given increasing whale activity is typically followed by a substantial price uptick. Historically, increased whale attention depicts a major event is on its way in a blockchain ecosystem. This expectation increases investors’ demand for the blockchain’s native token. The token’s price might also rally in line with the growing demand.
Another factor contributing to the increase in LINK’s price is the recent boost in on-chain activity. On September 19, Chainlink recorded its third-largest daily token circulation surge this year. Additionally, Chainlink has recently seen its price rise by 8.8% relative to Bitcoin (BTC).
Positive Developments in Chainlink: What’s Next for LINK?
Although caution is advised, the current trends in the Chainlink network suggest continued bullish momentum. The “Mean Dollar Invested Age,” which measures how long LINK tokens have been held, fell sharply in mid-September.
This indicates that long-term holders were once again moving their tokens. The movement of dormant tokens into circulation is historically a bullish sign, suggesting reengagement from long-term holders. However, the movement to exchanges might hint otherwise, hence the need to exercise caution when analyzing the trends.
Furthermore, social sentiments on the network have been positive. Chainlink has built a strong and active community on social media platforms, including Telegram, X (previously Twitter), and Reddit. These communities often amplify positive developments in the network, further driving investor interest.
Moreover, the Network Realized Profit/Loss (NRPL) indicator, which measures the financial position of the average LINK holder, shows profitability. This means several long-term LINK investors are now “in the money,” reducing selling pressure.
Chainlink’s recent price surge results from whale accumulation, strong on-chain activity, and rising market confidence. Technical indicators suggest the potential for continued price gains. However, investors must be cautious as short-term average returns are approaching a potentially dangerous zone.
Nonetheless, Chainlink’s long-term prospects remain bullish. As CNF mentioned earlier, this is supported by its growing role in bridging the gap between traditional finance and the blockchain ecosystem.
As of this writing, LINK price was trading at $12.83, up by 5% in the past 24 hours. The trading volume surged by 21.5% within the same period to $376 million.
