Despite market volatility, Chainlink (LINK) is witnessing major whale activity, with a major investor pulling over half a million tokens from Binance. This massive buying movement is increasing interest in the cryptocurrency despite the declines in LINK’s price, signaling a potential price increase.
According to IntoTheBlock, whale activity has increased by 41.5% in the last 24 hours, indicating that powerful players in the market are becoming more active. The large investments that came during Chainlink’s price correction are encouraging whale accumulation during this period. This strengthens expectations that LINK could recover in the future.
According to Lookonchain data, a notable Chainlink whale made a significant purchase during a period when the price of LINK was falling daily. In just 24 hours, the whale withdrew 100,000 LINK tokens from Binance, worth $2.95 million. Over the past three days, the whale withdrew a total of 529,999 LINK tokens, worth around $15.5 million.
This accumulation movement is parallel to the increase in whale activity, according to data from IntoTheBlock. The 41.5% increase in the last 24 hours shows that large investors are active in trying to exert more influence on the market. This movement suggests that whales see the current price correction as an opportunity to accumulate.
The increase in whale movements also coincides with the negative trend in the stock market net flow rate. This shows that large investors continue to withdraw their assets rather than deposit them into stock markets, which indicates that market sentiment is rising. The accumulation of assets by whales can ease selling pressure and trigger future price increases.
Despite positive signals from whale accumulation, the LINK price has seen a decline in recent days. However, considering the overall market context, the sentiment for LINK remains positive. Increasing whale activity and rising stock-to-flow ratio (SFR) are creating a positive mood among investors.
Chainlink’s Stock-to-Flow Ratio (SFR) has recently increased significantly from 0 to 1618.48, suggesting signs of scarcity in the market. Increased scarcity could encourage investors to accumulate, and as liquidity decreases, prices could rise if demand outstrips supply.
As the market adjustments continue, both whales and retail investors are eyeing favorable buying opportunities for Chainlink. If the uptrend continues, LINK could rally above the $30 resistance level and reach as high as $32.2. However, if the downside pressure continues, LINK could drop to $26.9.