Chainlink [LINK] has captured the interest of cryptocurrency investors following a notable price surge. Within the past seventy-two hours, LINK has seen an impressive 18% increase after rebounding from a crucial support level around $19.
This bounceback demonstrates the asset’s resilience in the face of market volatility.
Contributing to this upward trend is a significant rise in whale activity. A well-known analyst on X (formerly Twitter) reported that large holders have acquired more than 1.40 million LINK in the past 96 hours.
Such considerable accumulation often indicates growing confidence among prominent Chainlink investors, potentially signaling bullish sentiment for the long run.
Decrease in Exchange Outflows Despite Whales’ Confidence in LINK
An in-depth analysis of LINK’s on-chain data by CryptoCrypto has revealed positive indicators for the token.
While exchange outflows, which typically signify the movement of tokens away from trading platforms, have been declining steadily over the last three days.
This decline suggests that fewer LINK holders are transferring assets to exchanges for potential selling, reflecting a positive outlook in the market.
Interestingly, although the Long/Short Ratio displayed bearish tendencies, short positions have been gradually decreasing according to Coinglass data. This shift could be a result of profit-taking following the recent price increase.
Nevertheless, the consistent accumulation by whales implies a focus on long-term profits rather than short-term speculation.
Will Whale Activity Drive Prices Upwards?
The continuous accumulation by whales could signal a forthcoming price surge. Historically, heightened whale activity has often preceded bullish movements in the cryptocurrency market.
If this pattern persists, LINK might see a more substantial upward momentum in the days ahead.
Furthermore, the diminishing presence of the long/short ratio supports the potential reduction in selling pressure.
When coupled with whale confidence, this scenario sets the stage for LINK to challenge higher resistance levels.