Chainlink [LINK] has witnessed a significant surge in its market value over the last month. After dropping to a low of $10, this altcoin has seen a remarkable spike, reaching a high of $15.36.
The recent upward trend has sparked discussions among experts regarding the driving factors behind this surge. Notably, renowned crypto analyst Ali Martinez has highlighted the key factor as the growing accumulation by large investors.
Significant Accumulation of $165M in LINK by Chainlink Whales
Reports from Santiment reveal that Chainlink’s large investors have been actively amassing tokens over the past couple of months. During this period, they have acquired more than 15 million Link tokens, totaling approximately $165 million.
When major investors engage in extensive buying, it signifies a positive market sentiment. This suggests that these significant holders hold an optimistic outlook towards a potential market rally.
Furthermore, the positive sentiment among large investors is evident from the recent shift in large holders’ netflow. Following a sharp decline, it has now turned positive, indicating a surge in accumulation among large holders compared to selling activity.
Additionally, a similar trend can be observed in terms of exchange outflow volume. Data from IntoTheBlock illustrates that the outflow volume has reached a three-month high, with 1.8 million LINKs – valued at $25.92 million – being transferred to cold wallets. This behavior reflects a strong holding mentality among most LINK holders who are expecting further price appreciation.
Therefore, the rise in whale accumulation is occurring amidst a highly bullish market sentiment, with expectations of significant price gains in the near future.
Impact on LINK Price Trends?
An analysis of the trends from the past month indicates that the increased accumulation by large investors and the holding behavior of retail traders have positively influenced the price charts of Link.
Consequently, Chainlink has experienced a 21.28% surge in the past month, currently trading at $13.39. This bullish momentum has been sustained on a weekly basis, with a rise of 12.35%.
However, there has been a shift in the daily chart trend, showing a 10.82% decline. Despite this setback, the overall market sentiment remains optimistic, as highlighted earlier.
Therefore, if the positive market sentiment prevails, LINK is likely to break through the resistance level at $15, which has been a point of rejection in the past. Conversely, should the daily chart decline empower sellers, there could be a drop towards a critical support level at $10.