Chainlink whales trigger price rebound through strategic accumulation of LINK tokens

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. 

Also read: XRP price trades sideways as next crucial date approaches in SEC vs. Ripple legal battle

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. 

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. 

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