- Whales began to collect LINK over the last few weeks.
- The price of LINK fell as on-chain metrics observed a decline.
New data from lookonchain has unveiled significant accumulation activities by large addresses in the Chainlink [LINK] ecosystem.
A prominent whale initiated a substantial accumulation phase, withdrawing 417,834 LINK from Binance in the last two days.
Notably, this whale had previously acquired 641,386 LINK at an average price of $7.4, later selling it at an average price of $15.1, resulting in a profit of approximately $4.9 million
Whale Interest in LINK on the rise
The surge in accumulation by large addresses indicates a heightened interest among whales in the LINK token. This activity raises questions about the potential impact on LINK's price trajectory and market dynamics.
The accumulation by whales could have both positive and negative repercussions for LINK.
On the positive side, increased accumulation often signals confidence among significant investors, potentially driving up the token's value.
However, on the negative side, large-scale selling by these whales in the future could introduce selling pressure, impacting LINK's price.
Looking at the metrics
Examining the price movement of LINK, it was trading at $16.15, reflecting a -5.28% decrease in the last 24 hours. Despite this correction, the overall trend suggested a bullish trajectory, characterized by higher highs and higher lows.
Chainlink experienced a decline in network growth, indicating waning interest from new addresses. Additionally, the velocity of LINK decreased, signifying a slowdown in overall trading activity around the token.
The MVRV ratio for LINK exhibited growth in recent weeks, implying that holders remained profitable even amid the correction. The decline in LINK's price might be attributed to profitable holders capitalizing on their gains by selling their holdings.
Read Chainlink's [LINK] Price prediction 2023-24
Rising number of collaborations
Chainlink expanded its ecosystem through 14 integrations across nine different chains, including Arbitrum, Avax, BuildOnBase, BNBChain, Ethereum, Optimism, 0xPolygon, Polygon zkEVM, and zksync Era.
These collaborations signify Chainlink's ongoing efforts to enhance its presence and utility within various blockchain ecosystems.
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