By: Eliza Bennet
In the world of cryptocurrency, particularly for altcoins like Chainlink, 'whale' activity is a key aspect that crypto enthusiasts pay close attention to. Whales are entities or individuals who hold large amounts of a cryptocurrency.
One instance of how whale activity influences cryptocurrency trends can be illustrated by the recent surge in the price of Chainlink's native currency, LINK. Crypto analytics firm, Santiment, recognized that significant buying activity by LINK's whales ignited its price rally. Due to about 3.9 million tokens (worth over $62 million at that time) purchased over a few days, LINK's price skyrocketed above the $16 mark and is soon expected to break out to potentially reach over $19.50, marking a 20% increase.
Furthermore, a substantial reduction in LINK's availability across cryptocurrency exchanges indicates high holding sentiment among investors, fuelling its bullish case further. It is interesting to note that the 200 largest Chainlink addresses accumulated a whopping total of 746.57 million tokens, equivalent to nearly 75% of LINK's total supply. Such statistics emphasize the strong faith large investors place in this asset.
Understanding such whale activity and its implications can provide advanced users with insights into potential price trends and strategies for their cryptocurrency engagement. Investors are, however, recommended to exercise caution and conduct in-depth research due to the volatile nature of cryptocurrency markets.
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