Chainlink (LINK), the decentralized oracle network, recently increased a staggering 1,453% in massive transaction volume, signaling significant whale activity. This increase in activity raises questions about what could be driving the movements and whether a major price move is imminent.
According to data of IntoTheBlockChainlink recorded a 1,453% increase in major trading volume, totaling $885.23 million, or 62.3 million LINK in the past 24 hours.
Large trading volumes often represent movements by “whales” or large holders of significant amounts of cryptocurrency. LINK’s recent 1,453% spike in trading volume could indicate that major players are making significant moves.
However, the reasons for the large increase in trading volume may be different, some of which include speculation in the market, as whales may be preparing for significant price movements.
A significant increase in trading volume could be the basis for a coordinated buying or selling strategy to take advantage of upcoming market fluctuations.
18.77 million LINK sent to exchanges
Analyst Ali noted that 18.77 million LINK worth approximately $256.2 million were sent to exchanges in the past 24 hours.
Source: Ali
Blockchain data tracker WhaleAlert reports 4 transactions totaling over 18 million LINK sent to the Binance exchange from an unknown wallet.
The four transactions are as follows: two transactions carrying 3,499,999 LINK worth $49,267,056 were sent to Binance from an unknown wallet. In two separate transactions, 6,999,999 LINK worth $98,502,247 and 4,749,999 LINK worth $66,325,386 were transferred from an unknown wallet to Binance.
The large amount of LINK moved could be part of the token unlocking mechanism. According to Spot on Chain21 million LINK worth $295 million were unlocked from Chainlink’s non-circulating supply contracts, including 18.25 million LINK worth $264 million, which went to Binance, and 2.25 million The remaining LINK ($31.3 million) was sent to the multisig address.
Source: Spot on Chain
At the time of writing, LINK is down 1.68% over the past 24 hours to $13.61.
Holder LINK take profit more than 150 million dollars
LINK supply on exchanges increased to 230.43 million on June 21, a large spike over a 24-hour period. Typically, increasing the supply of an asset has a negative impact on prices because it increases selling pressure.
Whales holding between 10 million and 100 million LINK distributed their holdings over the same time frame, likely taking profits.
Data from cryptocurrency tracker Santiment shows that LINK supply on exchanges increased by nearly 9% in just one day, on June 21. The surge in supply has been accompanied by a spike in profit-taking by LINK holders, as net profit/loss (NPL) figures show.
The NPL metric is used to determine the net profit/loss of all tokens sold on a given day. The figures spiked sharply on June 21, as seen in the chart below. This implies that traders are massively pushing LINK onto exchanges to take profits.
Supply LINK on exchanges and NPL | Source: Santiment
Whale activity over the same time frame revealed important signals. Larger groups holding between 10 and 100 million LINK have distributed their coins and are likely taking profits while smaller groups holding between 100,000 and 1 million and 1 million and 10 million LINK have been accumulating altcoins.
Whale activity supports the narrative of massive profit-taking and the bearish thesis for LINK in case profit-taking continues and exchange supply increases.
Distribution of LINK supply by whale groups | Source: Santiment
LINK Could Extend Losses by 6%
Chainlink is in a downtrend that started on March 11. LINK could extend its losses if it fails to find a daily candle close above the upper boundary of the nearest Fair Value Gap (FVG) at $14.19.
LINK could drop to the $12.93 support level, coinciding with the June 18 low. The move marks a 6% decrease.
The MACD momentum indicator supports the bearish thesis. It shows red histogram bars below the neutral line, a sign of potential negative momentum in Chainlink’s price trend.
LINK 1-day chart | Source: Tradingview
A daily candle close above $14.19 could invalidate the bearish thesis. Chainlink could target $14.40, which is the 23.6% Fibonacci retracement level of the decline from the March 11 high of $22.86 and April 13 low of $11.78.
You can see the LINK price here.
Minh Anh
According to Bitcoin Magazine
