Chainlink price gears up for nearly 10% gains as LINK sees whale accumulation

Chainlink holders have engaged in accumulating LINK in the past two days. Chainlink’s supply has seen an increase in whale wallets and a decrease in retail investor holdings, likely to catalyze gains in the altcoin. 

Also read: Chainlink Price Prediction: Another buy opportunity at $18.12 likely for LINK traders

Chainlink sees whale accumulation, supply distribution that supports bullish thesis

Data from crypto intelligence tracker Santiment reveals that Chainlink has been accumulated by large wallet addresses since the beginning of the month. LINK wallets holding between 100 to 100,000 LINK tokens have shed their holdings while large wallets holding between 100,000 to 1 million LINK have accumulated the altcoin, as seen in the chart below. 

Whale accumulation alongside an increase in the asset’s price supports a bullish thesis for the altcoin.

LINK Supply Distribution. Source: Santiment 

Data from on-chain intelligence source Lookonchain reveals that eight fresh wallets withdrew 831,160 LINK tokens worth approximately $16.72 million from Binance, in the past 48 hours. This effectively reduces the supply of LINK held in exchange wallets and contributes to a decrease in selling pressure. 

It signals whales are accumulating LINK and there is a decrease in selling pressure, both signs of price gains in the short to medium term. 

LINK accumulation by whales. Source: Etherscan 

While there is anticipation and demand among market participants for Bitcoin and Ethereum ETFs, leading crypto influencer behind the X handle @ChainLinkGod calls for a Chainlink Spot ETF and points out how Grayscale’s Chainlink Trust’s product GLNK is “broken.”

GLNK is trading at 750% premium, can traders benefit from the arbitrage?

GLNK is Grayscale’s Chainlink Trust’s product that is trading at a 750% premium on its holdings of LINK. This premium has not been arbitraged since GLNK share holders can sell them in the secondary market after a 12 month waiting period, therefore on paper a newly issued share may be instantly up 750%, there is no conclusive information on what the altcoin’s price will be in a year’s time. 

GLNK would have been ideal for arbitrage if there was an underlying LINK Spot ETF, however, the Securities and Exchange Commission is yet to approve Spot ETFs for cryptocurrencies other than Bitcoin. 

LINK price could rally to 2024 peak

Chainlink price is currently in an uptrend. The technical indicators, Moving Average Convergence/Divergence (MACD) and Awesome Oscillator (AO) indicate that a correction is likely in Chainlink price. LINK could therefore sweep the 23.6% Fibonacci retracement level of its rally to 2024 peak, at $19.45, before resuming its climb towards $21.69. 

A climb to $21.69 indicates nearly 9% gains in the asset. LINK price hit its 2024 high of
$21.69 on March 2. 

LINK/USDT 1-day chart 

Chainlink price could decline to 38.2% Fibonacci retracement at $18.06, in the event of a correction in the altcoin.