Chainlink price in slump, whales buy the dip with $24 million in LINK tokens
- Chainlink whales holding between 10,000 and 1,000,000 LINK bought the dip, scooping up $24 million tokens in ten days.
- Swift’s partnership with Chainlink and the successful completion of its experimentation on August 31 is likely a catalyst for whale accumulation.
- Chainlink token accumulation is driving social media mentions and dominance of LINK, which could support price recovery.
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Chainlink price is in a downward trend that started in July. While the successful completion of interbank messaging giant Swift’s experimentation with Chainlink acted as a catalyst for the asset, it drove social volume and sentiment higher among traders rather than LINK price.
LINK whales holding between 10,000 and 1,000,000 Chainlink tokens bought the recent dip in the asset, anticipating a recovery in the altcoin’s price in the future.
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Chainlink whales busy buying the LINK price dip
Chainlink’s large wallet investors holding between 10,000 and 1,000,000 LINK tokens have added $24 million worth of the asset to their portfolio in a ten-day timeframe. Whales are known to accumulate an asset in anticipation of a recovery in its price. The recent accumulation of LINK tokens is a “buy the dip” move by whales as Chainlink price continues its downward trend.
Chainlink accumulation by whales holding between 10,000 and 1,000,000 LINK
There are two likely drivers of whale accumulation:
- Swift’s successful experiment with the Chainlink partnership
- Declining LINK price, promoting the “buy the dip” activity among whales
Typically, whale accumulation is accompanied by a positive sentiment among traders, as it drives demand for LINK across exchanges. Based on data from crypto intelligence tracker Santiment, there has been a consistent increase in the social dominance of LINK over the weekend. The metric indicates the dominance of “LINK” mentions across social media platforms compared to other cryptocurrency assets.
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LINK social dominance vs price on Santiment
At the time of writing, LINK price is $5.841. The altcoin wiped out 3% from its price over the past week. It remains to be seen whether LINK price breaks out of its downward trend with the catalysts driving the social metrics of the altcoin.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
