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- Chainlink is outperforming the general market with whales pushing prices up 35%.
- Macroeconomic trends might be weighing deep on Chainlink accumulation and pricing.
Over the weekend, Chainlink (LINK) saw its price increase by approximately 35% to trade at $16.7. This increase represents a huge achievement for Chainlink and has left investors wondering whether recent whale activities are driving the surge.
Whale Scoop Large Portions of LINK
According to on-chain data, large investors, often referred to as crypto whales have been amassing large amounts of LINK recently. This move follows potentially dovish macro indices released in the US this month, as previously reported by Crypto News Flash.
Santiment released a chart that shows Chainlink had 554 active whale wallets as of May 3 when the US Fed announced a rate pause. Whale activity on the Chainlink network has been steadily increasing ever since. As of May 17, the number of Chainlink whale wallets surged to 567, coinciding with the latest Consumer Price Index (CPI) data release.
This means that, in the last two weeks, an additional 23 whale wallets have been active on the Chainlink network and each of them has bought LINK tokens valued at least $1.5 million. Notably, crypto whales are investors that hold at least 100,000 of any given cryptocurrency. For Chainlink, 100,000 of its tokens are valued at about $1.5 million, according to the current market price.
Typically, the increase in whale activities on a blockchain network indicates a bullish signal for two primary reasons. Firstly, a rise in whale involvement shows their confidence in the future potential of the digital asset. Because whales are usually well-informed and have access to advanced analytical tools, their actions can be a reliable predictor of future success.
Secondly, the acquisition of large quantities of LINK by recently established whale wallets may result in a shortage of supply, pushing up the price. Whales frequently hold out for longer-term investment goals, therefore, a decrease in the quantity accessible on the open market may result in higher pricing.
Moreover, the timing of this increase in Chainlink whale activity points to whales acting proactively to take advantage of impending US Fed rate cuts. This month, the US Bureau of Statistics reported a consumer inflation rate of 3.36%, which is lower than the 3.48% rate from April and the 4.93% rate from last year.
Analysts predict that a Fed rate cut in 2024, could lead to more growth in the crypto markets, particularly in developing sectors like Asset Tokenization where Chainlink is a dominant player.
Price Predictions for LINK
At the time of this writing, LINK is trading around the $16.7 threshold. In the last week, the token has seen increases of over 25%, with its market capitalization pegged at $9.8 billion. The growing interest in whale activities for LINK suggests a move towards $20 in the days ahead.
This projection is supported by LINK’s ability to break above critical resistance at $15.97, indicating short-term control from bulls. However, the bulls are advised to hold the $14.12 support price level to maintain their upward momentum. Meanwhile, pseudonymous analyst CrediBULL Crypto tells his X followers that LINK may be heading towards a massive correction.
