According to Lookonchain data On December 20, whales are actively accumulating Chainlink (LINK) and Polygon (MATIC) and transferring them from Binance, one of the world's largest cryptocurrency exchanges by trading volume.
Citing on-chain transfers, Lookonchain notes that LINK is specifically seeing significant accumulation from a new wallet dubbed “0x8eAD,” which has withdrawn 247,860 LINK worth approximately $3.5 million from Binance in the past two days.
Meanwhile, two new wallets, “0xa813” and “0x38b3”, have been actively accumulating MATIC, withdrawing 5 million MATIC worth around $3.13 million from Binance today.
Whales are piling up, will MATIC and LINK recover?
The fact that whales, individuals or entities that control large amounts of a particular token or coin are surrounding MATIC and LINK is clearly bullish and could support prices in the coming sessions.
In particular, the transfer is considered bullish when whales move coins from exchanges to non-custodial wallets, such as hardware wallets or even hot wallets, to participate in decentralized finance (DeFi), degen trading, or nft trading.
This change is because unlike centralized exchanges like Binance, where their intention is usually to trade for other coins or USDT, on chain apps, they can use the same stash to earn rewards, for example by providing liquidity or staking. .
Therefore, considering the recent transfer, LINK and MATIC prices could recover and rise in the coming trading sessions. So far, looking at the candle formations on the daily chart, LINK remains stable and in an uptrend. Notably, prices are trading above the 20-day moving average, suggesting that the coin has found support. Currently, LINK is up 155% from September lows, but down 15% from November highs.
On the other hand, MATIC also remains stable and rejects attempts at lower lows. After days of consolidation, the coin has support around $0.70, matching a critical level recorded in November.
Still, whether the uptrend will resume depends on whether prices will rise, surpassing $0.93 or the November 2023 highs in the next session.
Technically, $0.95 marks a critical reaction level for MATIC which, if broken completely, could open the doors to $1.20 and $1.60 in the coming sessions.
Critical Features of Polygon and String Deployment
Beyond the current technical formations, fundamental events underpin Polygon and Chainlink bulls, especially around decentralized finance (DeFi) and layer 2 scaling.
Chainlink's new staking update aims to remove more LINK from circulation, possibly boosting prices in the face of growing demand for the Cross-Chain Interoperability Protocol (CCIP).
Meanwhile, as other blockchains are repurposed to become ethereum layer 2, Polygon CDK is becoming a critical cog in accelerating the process, directly supporting MATIC prices.
Featured image from Canva, TradingView chart
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