Chainlink (LINK)'s momentum in February has largely slowed and the cryptocurrency's current performance appears lackluster. in comparison with other great crypto assets. However, it looks like the cryptocurrency is gearing up for some action in the coming weeks. Interestingly, new on-chain data has revealed a new accumulation pattern by LINK whales that could cause a resumption of an uptrend in prices.
According to blockchain tracker Lookonchain, there has been an outflow of 831,160 LINK worth $16.72 million from the Binance cryptocurrency exchange in the last two days into eight new private wallets.
Looks like the whales are buying $LINK!
We noticed that 8 new wallets withdrew 831,160 $LINK($16.72 million) #Binance in the last 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
Linked Whales Resume Accumulation Trend?
Whale transactions are largely monitored because they help show the general sentiment among traders about a crypto asset. This recent accumulation in new wallets points to a persistent bullish belief in LINK by some large traders, even though the cryptocurrency currently has weak momentum.
Chainlink made a unprecedented price increase at the end of January and lasted until the month of February, which allowed it to exceed $20 for the first time in more than two years. Throughout this time, cryptography witnessed largest accumulation of whales and investors. Notably, this price surge made Chainlink outperform the broader crypto industry, including bitcoin. As a result, LINK skyrocketed up the market cap rankings. to surpass DogecoinAvalanche, Tron and Polygon.
LINK market cap currently at $11.6 billion. Chart: TradingView.com
LINK's price journey has slowed since early March, with the cryptocurrency primarily trading in a range of $18.15 to $20.82 over the past seven days. Data from Coinmarketcap shows that LINK is down 4.70% in the same time period, despite huge inflows into bitcoin, ethereum, and meme coins like DOGE and SHIB.
However, the cryptocurrency is not out of this yet, as LINK's big moves suggest. deliberate market movements rather than mere speculation. The emergence of new wallets accumulating substantial amounts hints at strategic positioning for an incoming price increase.
Chain link to rival bitcoin?
bitcoin has taken advantage of the recent inflows into bitcoin Spot ETF to overcome subsequent price levels and reach a new all-time high. On the other hand, Chainlink's fundamentals and its enormous utility in the DeFi ecosystem, smart contracts and NFTs point to constant price increases. Chainlink is particularly poised to continue growing as these niches continue to gain real-world adoption.
At the time of writing, LINK is trading at $19.98. In a bullish scenario, LINK could resume positive momentum driven by significant whale activity, allowing it to break above a resistance level of $20.8. If this trend continues, the token could aim higher and surpass $21.4 and potentially reach $28 this month.
Featured image from Pexels, chart from TradingView
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