Chainlink whales trigger price rebound through strategic accumulation of LINK tokens
- Chainlink’s large wallet investors are scooping up LINK tokens after consistent profit-taking in the past two weeks.
- Four whale wallets have pulled 119,583 LINK tokens from exchanges, early on Monday.
- LINK price continued its climb, posting nearly 4% gains for the altcoin, at $18.765.
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Chainlink, an Ethereum-alternative token, climbed nearly 4% on Monday after posting gains consistently for two weeks. Large wallet holders with LINK tokens are pulling the altcoin off exchanges, supporting a recovery in Chainlink price.
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Chainlink accumulation by whales
According to data from Lookonchain, a crypto intelligence tracker, four large wallet addresses scooped up 119,583 tokens from Binance, early on Monday. After two weeks of consistent profit-taking, it is likely that LINK whales are ready to begin Chainlink accumulation, according to a Santiment chart.
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Chainlink profit-taking by whales. Source: Santiment
As whales accumulate Chainlink, a reduction in LINK’s circulating supply could support its recovery. As of February 5, LINK price climbed nearly 4% on the day.
While LINK Supply on Exchanges increased nearly 8% between December 15 and February 4, the recent whale accumulation should change the trend and support a reduction in the asset’s circulating supply, paving way for LINK price rally.
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LINK Supply on Exchanges. Source: Santiment
Chainlink price rally is likely to continue as LINK posts nearly 4% daily gains and sustains above the $18 level on Monday. Crypto analyst Jacob Canfield evaluated the Chainlink price trend and noted that the $18 level is a key level historically for LINK price. A bounce off $18 could push LINK price towards its $27 target and the high target for Chainlink is $34.
LINKUSDT Perpetual Contract 3-day chart
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.
