The decentralized oracle network Chainlink has been making waves in the crypto market, especially with its native token, LINK. Just a few hours ago, another surge was witnessed, driven predominantly by ‘whale’ activity.
LINK’s Meteoric Rise Attributed to Whale Buys
According to on-chain analytics provider Lookonchain, a single whale wallet made a considerable move, acquiring 424,443 LINK tokens. This purchase, which was worth approximately $3.25 million, was made at a price of $7.67 per LINK. Intriguingly, this transaction made the price surge.
This isn’t an isolated incident. In recent months, we have seen a trend where large LINK accumulations are made by whales, affecting the price. Though some warn that the lack of distributed ownership leaves LINK vulnerable to manipulation, regardless, traders have been eager to capitalize on the pumps sparked by these mammoth buys.
In July, the price of LINK saw a significant 6.5% increase following a series of large purchases totaling approximately $6 million. These two large buys coming in quick succession rapidly pushed Chainlink’s price from around $7.40 to over $7.90. Many analysts believe the activity reflects ongoing accumulation by one or two whales who were aggressively buying up available LINK supply. This has been parallel to a bullish price trend for the token.
In September, Chainlink stood out as a top performer in the crypto market, drawing a significant number of traders. Its rising popularity is due to its oracle services, which are increasingly being used in DeFi, NFTs, and other areas.
Debate Arises: Concentrated Buys – Market Manipulation or Strong Conviction?
Every coin has its flip side. While critics warn that Chainlink might be vulnerable to price manipulations due to such intense concentrated activity, proponents view these major acquisitions as a clear indicator of deep-seated trust in Chainlink’s long-term prospects, particularly its pivotal role in web3.
Traders consistently seek opportunities, with many appearing eager to leverage the rallies spurred by these whale-induced LINK accumulations.
Chainlink’s all-time high reached nearly $53, a figure considerably above its current price. If more such significant purchases occur, LINK’s price might see a significant rise. Whales are heavily investing in Chainlink at these prices. However, like all investments, only time will reveal the results of these optimistic actions.
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