Over the weekend, Santiment, a leading cryptocurrency data provider, shared an interesting observation on Twitter, signaling a remarkable surge in Chainlink (LINK) activity. The Chainlink network exhibited a rise in whale transactions, unique interacting addresses, and trading volume, marking a significant milestone with these metrics reaching their highest points in the past three months.
While the entire altcoin market has been experiencing the ripple effects of Bitcoin’s redistribution, LINK has emerged as a standout performer in this recent surge.
Whales Rejoice As Chainlink Hits New Highs
LookOnChain delved deeper into the recent meteoric rise of Chainlink’s price in a separate tweet thread. They reported a staggering 25% increase in LINK’s value over the past two days, prompting an investigation into the driving forces behind this remarkable rally.
Notably, the analysis revealed that Korean exchanges Bithumb and Upbit had accumulated a substantial 945,000 LINK tokens worth approximately $9 million. It was observed that the upswing in LINK’s price owed a significant debt to the activities of these exchanges, particularly Bithumb.
However, the situation quickly shifted as Bithumb ceased its LINK accumulation and transferred out 220,000 LINK, valued at around $2.05 million. This move coincided with a noticeable drop in LINK’s price from its peak.
An analysis of LINK’s holders further highlighted the involvement of several significant whale addresses in the LINK market. Some of these addresses had accumulated LINK since February and began selling off in October, while others had accumulated substantial sums of LINK from Binance starting in September.
One particular whale, consisting of 38 addresses, had purchased 1.25 million LINK at an average price of $7.58 and subsequently realized a significant profit in the current market conditions. Nevertheless, investors were advised to exercise caution, especially regarding whales selling LINK to capitalize on profits.
In a twist to the story, SmartMoney entered the fray. One wallet that had capitalized on Chainlink price fluctuations decided to short LINK by selling 38,381 LINK tokens at $9 and then borrowing 38,747 LINK tokens from Aave to sell at $9.5, further contributing to the complex dynamics of LINK’s recent price movements.