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Chainlink- Analyzing the price impact of whale’s $2.95M withdrawal
Chainlink whales have been actively participating in the network, and their latest accumulation move may be signaling a potential long-term holding intention. According to recent data from Lookonchain and IntoTheBlock, a significant Chainlink whale has withdrawn 100,000 LINK tokens worth $2.95 million in the last 24 hours. This withdrawal is part of an even larger 529,999 tokens worth $15.5 million that occurred over the past three days on Binance.
While it’s natural to assume a negative impact from such a substantial withdrawal, the data suggests otherwise. The increased whale activity signals a shift towards accumulation and long-term holding intentions rather than selling pressure. In fact, the Large Holders Netflow to Exchange Netflow Ratio has taken a nosedive over the past week and remains negative for three consecutive days. This is a clear indication that whales are actively hoarding their assets, which in turn reduces potential selling pressure.
This reduction of supply can create a bullish signal if demand continues to increase. It’s worth noting that despite this substantial withdrawal, LINK has not experienced a significant price drop, but rather a decline by 3.02% over the past day.
The market is yet to fully react to this accumulation event, and as such, it would be premature to draw any conclusions regarding its impact on the Link price. However, considering the fundamental analysis and whale activity data, Chainlink’s recent chart performance appears to be a bullish signal.
It is also important to highlight that the stock-to-flow ratio (SFR) has spiked from 0 to 1618.48, indicating an increase in scarcity which may drive prices up if demand outpaces supply. This could further support the notion that whales are accumulating LINK for the long-term.
In conclusion, while it would be unfair to say that this withdrawal has not had any impact on LINK’s price, considering the whale activity and fundamental indicators, there is no reason why Chainlink cannot reclaim the $30 resistance level and potentially aim for $32.2 if market sentiment holds.
It is essential to monitor this development closely as it could have significant implications for investors.
Source: ambcrypto.com
