Chainlink’s price has seen significant gains over the past 5 weeks, rising 30% to current levels around $7.51. While some may attribute this to overall market movements or speculated developments, a new report from Santiment suggests another driver could be at play – aggressive accumulation by large LINK holders.
Santiment’s analysis tracked wallets holding between 100K to 1 million LINK tokens, colloquially known as “whales” in the crypto sector. According to their data, these major holders have been scooping up Chainlink at a rapid pace, adding an incredible $38.5 million worth in just the last week alone.
This buying frenzy amongst the cryptocurrency’s wealthy elite has continued even after Chainlink’s major price gains throughout September and October. Rather than taking profits, the whales appear confident enough to continue building their positions.
Source: Santiment – Start using it today
Such aggressive accumulation can be a powerful indicator in the crypto markets. If the so-called “smart money” whales are stockpiling an asset, it often signals strong confidence in further upside ahead.
The actions of these large holders outweigh short-term moves by everyday retail traders, who may simply be capitalizing on quick speculative gains. In contrast, whales tend to have longer time horizons and more information regarding developments that could impact price.
As CaptainAltcoin’s Analyst Petar Jovanović put it, “When it comes to predicting major price moves, following the whales tends to be more insightful than observing minor profit-taking activity.”
If Chainlink’s whales continue building up their war chests at the current pace, it’s likely to put significant buying pressure on the cryptocurrency. That type of sustained accumulation has the potential to fuel further dramatic price rises over the coming weeks and months.
Of course, only time will tell if the whales’ appetites will ultimately be satisfied, or if their aggressive buying actually represents the driving force behind Chainlink’s outstanding performance in recent months. But for now, the whales appear to be hodling for the long haul, and seem hungry for more.
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