Chainlink Whales Deposit $350 Million into Exchanges, Bearish Sign for LINK Price
Recent on-chain data reveals that Chainlink whales have transferred $350 million worth of the cryptocurrency into exchanges. This indicates a potentially bearish outlook for the price of LINK.
Spiked Volume of Large Transactions on Chainlink Network
Analyst Ali has highlighted a surge in activity on the Chainlink network. Specifically, there has been an increase in “large transactions volume,” which measures the total amount of Chainlink moved in transfers worth at least $100,000.
This metric is often associated with whales and institutional investors, providing insight into their current activity levels. High values suggest significant movement of tokens by these major players, indicating potential buying or selling in the market.
Conversely, low values suggest that these large holders are less active and potentially disinterested in the cryptocurrency.
Deposits on Centralized Exchanges and Potential Selloff
The recent deposits made by Chainlink whales have primarily been on centralized exchanges. This suggests that these investors may be preparing for a selloff, as one common reason for transferring tokens to exchanges is for selling purposes.
Despite these deposits, Chainlink’s price has not been negatively impacted and has actually experienced an 8% surge above the $6.7 mark. However, this bullish momentum may be short-lived if these whales follow through with their selloff plans.
Hot Take: LINK Price Vulnerable to Selling Pressure
The recent influx of deposits by Chainlink whales onto exchanges raises concerns about a potential selloff in the future. While the current price surge suggests bullish sentiment, it may not be sustainable if these major holders decide to sell their tokens.
Ultimately, the market’s ability to absorb this selling pressure will determine the longevity of LINK’s price increase. It remains to be seen whether Chainlink can maintain its upward momentum in the face of potential selling by whales.
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