The Momentum of Chainlink (LINK) Could Resume with Whales Accumulating
The performance of Chainlink (LINK) in February has slowed down compared to other large crypto assets. However, recent on-chain data suggests that the cryptocurrency may be gearing up for some action in the coming weeks. LINK whales have been accumulating the cryptocurrency, indicating a potential price uptrend.
Whales Accumulate LINK
According to blockchain tracker Lookonchain, there has been an outflow of 831,160 LINK worth $16.72 million from crypto exchange Binance in the past two days. This amount has been transferred into eight new private wallets.
Implications of Whale Accumulation
Whale transactions are closely monitored as they provide insight into the sentiment among traders of a crypto asset. The recent accumulation into new wallets indicates that some large traders still hold a bullish belief in LINK, despite its current weak momentum.
In late January and throughout February, Chainlink experienced an unprecedented price spike, crossing over $20 for the first time in over two years. During this period, there was increased accumulation from whales and investors. This surge in price allowed Chainlink to outperform other cryptocurrencies, including Bitcoin, and climb up the market cap rankings.
The ongoing accumulation by whales suggests deliberate market moves rather than mere speculation. It hints at strategic positioning for an incoming price increase.
Chainlink’s Potential as a Rival to Bitcoin
While Bitcoin has benefited from inflows into Spot Bitcoin ETFs to reach new all-time highs, Chainlink’s fundamentals and utility in the DeFi, smart contracts, and NFT ecosystem indicate consistent price increases. As these niches continue to gain adoption in the real world, Chainlink is well-positioned for growth.
Currently, LINK is trading at $19.98. In a bullish scenario, the cryptocurrency could regain positive momentum supported by significant whale activity and break through the resistance level of $20.8. If this trend continues, LINK could aim higher and surpass $21.4, potentially reaching $28 by the end of the month.
Hot Take: Chainlink Whales Accumulating – A Positive Sign for LINK
The recent accumulation of Chainlink (LINK) by whales indicates a potential price uptrend in the near future. Despite its lackluster performance compared to other cryptocurrencies, the ongoing accumulation suggests that some large traders still have a bullish outlook on LINK.
This accumulation comes after Chainlink experienced a significant price spike in January and February, outperforming other cryptocurrencies in the market. The strategic positioning of whales accumulating substantial amounts of LINK hints at deliberate market moves rather than speculative trading.
As Chainlink’s utility in the DeFi, smart contracts, and NFT ecosystem continues to grow, it has the potential to rival Bitcoin in terms of price appreciation. With significant whale activity supporting LINK’s positive momentum, it could break through resistance levels and reach new highs.
Keep an eye on Chainlink as it may be gearing up for another round of price increases in the coming weeks.
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