Over the past three days, Chainlink [LINK] has captured the interest of cryptocurrency investors with a notable increase in its value. The cryptocurrency experienced a significant 18% surge following a bounce back from the critical support level around $19. This spike reflects the strength of the asset amidst the volatile market conditions.
Contributing to this rally is the heightened activity of large holders, commonly referred to as whales. Recent data analysis suggests that these major investors have acquired more than 1.40 million LINK tokens in the past 96 hours, indicating a strong bullish sentiment among key players in the Chainlink ecosystem.
Decrease in Exchange Outflows Coupled with Whale Confidence
A detailed examination of Chainlink’s on-chain metrics by CryptoCrypto has unveiled positive developments for the token. Despite a decline in exchange outflows – which typically signal a movement of assets away from trading platforms – over the last few days, there is a visible decrease in LINK holders transferring assets to exchanges for potential selling, hinting at an optimistic market outlook.
Interestingly, while the Long/Short Ratio painted a bearish picture, there was a gradual decrease in short positions as per Coinglass data. This trend could be attributed to profit-taking following the recent upsurge. Nevertheless, the continuous accumulation by whales suggests a focus on long-term gains rather than immediate profits through short-term trading.
Will Whale Activity Drive Prices Higher?
The consistent accumulation by whales may serve as an indication of a forthcoming price rally. Historically, escalated whale activity has often preceded bullish movements in the cryptocurrency market. If this pattern persists, Chainlink could witness a robust upward momentum in the days ahead.
Furthermore, the diminishing presence of the long/short ratio supports the notion of reduced selling pressure. When combined with whale confidence, this situation could pave the way for Chainlink to challenge higher resistance levels in the near future.