Chainlink’s [LINK] price has shown a consistent upward trend over the past month. After reaching a low of $10, this altcoin has made significant gains in its market value.
Interestingly, during this period, LINK has disconnected itself from the general altcoin market. This separation indicates that LINK has performed better than other altcoins, moving independently. Consequently, the altcoin successfully broke through the $13.65 resistance level, a milestone not achieved since July.
With Bitcoin reaching a new all-time high of $76k, LINK has followed suit, with the BTC/LINK exchange rate showing an upward climb. In the last hour alone, the BTC/LINK conversion rate decreased by 0.46%, and over the last 24 hours, it dropped by 4.61%.
In essence, LINK has shown a stronger demand and better price performance in the short term compared to BTC. Furthermore, the 3-month correlation between Chainlink and Bitcoin currently stands at 0.72. This suggests that in recent months, both LINK and BTC have been moving in a similar direction.
Given LINK’s increasing strength relative to other altcoins and Bitcoin, the pertinent question arises – what factors are driving this trend?
Soaring Chainlink Whale Activity Reaches Three-Month High
Recent data from Santiment indicates that a surge in whale activities and the accumulation by major holders have significantly contributed to LINK’s recent price surges. Therefore, the primary catalyst behind the recent momentum of the altcoin can be traced back to heightened whale activity.
According to Santiment’s statistics, major holders holding between 100k and 10 million LINK tokens have expanded their positions. These whales have accumulated an additional $369.8 million worth of LINK in the past 7 weeks alone.
This spike demonstrates an 8.2% increase in whale holdings, with current figures standing at a three-month high. Typically, whale accumulation signifies investor confidence in the altcoin’s long-term potential as they anticipate further price gains.
This sentiment is further supported by a rise in inflows from major holders. According to IntoTheBlock, inflows from large holders rose from a low of 1.49 million to 2.29 million LINK tokens. This indicates active accumulation by major holders, anticipating an upward movement in the price charts.
Furthermore, the number of active addresses (30 days) climbed from 41.1k to 45.1k. This suggests sustained demand and engagement with the altcoin, essential factors for a price rally.
How Does This Impact LINK’s Price Activity?
Unsurprisingly, the surge in whale activity, particularly in accumulation, has had a significant impact on LINK’s price movements.
As of the latest data, Chainlink is trading at $13.66. This showcases a 6.86% increase in 24 hours, with the altcoin rising by 21.07% and 28.16% on the weekly and monthly charts, respectively.
The current price action indicates a robust upward momentum and positive market sentiment surrounding the altcoin. Therefore, if the prevailing market conditions persist, LINK could breach the $15 mark for the first time since July. Further upward movement could push the altcoin towards the $19 resistance level.