Chainlink: Deciphering reasons behind the whales’ interest in LINK

January 16, 2023 Scryptopia Chainlink 0

  • LINK was on the list of the cryptos that the top 1000 Ethereum whales were holding.
  • Last week, there were eight integrations of three Chainlink services across four different chains.

Chainlink [LINK] once again became popular among the whales, which reflects the top supply holders’ trust in the token. WhaleStats, a popular Twitter handle that posts updates related to whale activity, recently revealed that LINK was on the list of the cryptos that the top 1000 Ethereum whales were holding. Apart from LINK, SHIB, UNI, and MATIC were also on the list. 

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Possible reasons behind whale interest

A major factor that can be attributed to LINK’s popularity among whales could be the token’s recent price action. ConMarketCap’s data revealed that LINK’s price increased by more than 12% in the last seven days, and at press time, it was trading at $6.84 with a market capitalization of over $3.4 billion.

Not only that, but increased adoption may also be a valid reason. Chainlink recently posted its weekly adoption update, in which it was mentioned that last week, there were 8 integrations of 3 Chainlink services across 4 different chains, namely BNB Chain, Ethereum, Polygon, and Solana. 

The increased whale interest can also be attributed to LINK’s performance on its metrics front, as most of them looked positive for the network. For example, LINK’s development activity has increased in the last month, reflecting the developers’ increased efforts to improve the network.

LINK’s exchange outflow also registered several spikes, which was bullish. CryptoQuant’s data revealed that LINK’s net deposits on exchanges were low compared to the 7-day average, suggesting less selling pressure.

Interestingly, active addresses on Chainlink have also registered an increase lately, representing more users on the network. However, LINK’s network growth decreased over the last few weeks, which was a negative signal. 

Source: Santiment

How much are 1,10,100 LINKs worth today

However, not everything looked good

While the metrics looked optimistic for LINK, the market indicators revealed the other side of the story. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) registered downticks and were headed toward the neutral mark.

This was bearish, as it increased the chances of a price plummet in the coming days. Nonetheless, the distance between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was reducing, which might soon result in a bullish crossover.

Source: TradingView