Over the past month, Chainlink [LINK] has been on a consistent upward trajectory. After reaching a low of $10, the altcoin has experienced significant growth in its price.
What’s notable is that during this period, LINK has shown independent movement from other altcoins in the market. This indicates that LINK has outperformed other altcoins by moving on its own. As a result, the altcoin successfully broke through the $13.65 resistance level for the first time since July.
With Bitcoin reaching a new all-time high of $76k, LINK also followed suit, causing the BTC/LINK exchange rate to rise. In the last hour alone, the BTC/LINK conversion rate dropped by 0.46%, and within the past 24 hours, it decreased by 4.61%.
In simple terms, LINK has been showing stronger demand and better price performance in the short term compared to BTC. Furthermore, the correlation between Chainlink and Bitcoin over the past 3 months stood at 0.72 at the current moment. This suggests that LINK and BTC have been closely following similar trends in recent times.
Given LINK’s increasing strength compared to other altcoins and Bitcoin, the key question to ask is – What is fueling this trend?
Noteworthy Surge in Chainlink Whale Activity
Recent data from Santiment reveals that a rise in whale activities and accumulation by large holders have been significant factors in driving LINK’s recent price surges. Therefore, the notable uptrend in whale activity is the primary catalyst behind the altcoin’s recent momentum.
According to the data from Santiment, large holders with balances ranging from 100k to 10 million LINK tokens have been increasing their holdings. These whales have accumulated an additional $369.8 million worth of LINK in just the past 7 weeks.
This surge reflects an 8.2% expansion in whale holdings, marking a three-month high. Typically, the accumulation by whales signals their confidence in the long-term potential of the asset, anticipating further price gains.
This sentiment is also supported by a noteworthy increase in inflows from large holders.
Statistics from IntoTheBlock indicate that inflows from large holders surged from a low of 1.49 million to 2.29 million LINK tokens. This suggests active accumulation by large holders, hinting at expectations for a potential price increase.
Additionally, the number of active addresses (30 days) rose from 41.1k to 45.1k, indicating sustained demand and engagement with the altcoin – Both crucial factors for a price rally.
Effects on LINK’s Price Movement?
Expectedly, the surge in whale activity, particularly in accumulation, has had a significant impact on the price charts of the altcoin.
Currently, Chainlink is trading at $13.66. This signifies a 6.86% increase in the past 24 hours, with LINK showing gains of 21.07% and 28.16% on the weekly and monthly charts, respectively.
The recent price action further suggests that the altcoin is experiencing strong upward momentum and positive market sentiment. In this scenario, if the current market conditions persist, LINK could potentially reach $15 for the first time since July. A breakout above this level could propel the altcoin towards the $19 resistance mark.