Chainlink Whale Holdings Hit Eight-Month Peak: Analyzing the Impact on LINK's Market

2024-07-23, 08:45

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![](https://gimg2.gateimg.com/image/article/1721724009rdzz.jpeg)
## [TL; DR]
The surge in <a href="/price/link-ln" target="_blank" class="blog_inner_link">LINK</a> whale activity is a bullish signal for the asset.

During the past two months the LINK MVRV ratio was negative indicating a buying opportunity.

Chainlink’s integrations and partnership may act as additional catalysts for the token price surge.

## Introduction
There is turbulence in the cryptocurrency market since many assets are under much selling pressure forcing them to perform below the expected levels. For example, after <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> attained a new all-time-high (ATH) of close to $74,000  the market anticipated that it would kickstart a strong crypto bull market. However, the crypto market failed to behave as expected. Several crypto assets like Link and <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>, though, have shown much resilience. Today we [focus on how crypto whales](https://www.gate.io/blog_detail/2250/what-are-crypto-whales-and-why-the-matter "focus on how crypto whales") have maintained their presence within the LINK market. We shall also explore the factors that maintain investors’ interest in LINK.

Read also: [BTC Whale Holders: Is it possible to know who they are?](https://www.gate.io/blog_detail/451/btc-whale-holders-is-it-possible-to-know-who-they-are "BTC Whale Holders: Is it possible to know who they are?")

**IMPORTANT NEWS**: As of July 9, 2024, Chainlink (LINK) reached an all-time high of $52.99, the highest price paid for the cryptocurrency since its launch. Before this, the highest price for Chainlink (LINK) was $52.70, recorded on May 10, 2021 (about three years). One of the factors that helps to maintain LINK’s momentum is the whale accumulation despite the current crypto market’s poor performance.

Since the beginning of June, the Chainlink (LINK) whales have increased their acquisition to a level last seen in November 2023.  Despite the cryptocurrency’s 18% price drop in June the Chainlink whale holdings have continued to increase.  For example, during the second week of July the whales acquired over 6 million tokens, valued at around 75 million. The crypto whales buying spree comes at a time when the token’s price has fallen significantly. As of this writing, people can <a href="/how-to-buy/link-ln" target="_blank" class="blog_inner_link">buy LINK</a> for $14.18 after it lost by 2.8% within the last 30 days as the following chart indicates. 
![](https://gimg2.gateimg.com/image/article/17217241192.jpeg)
LINK’s 30-Day Price Chart – [CoinGecko](https://www.coingecko.com/en/coins/chainlink "CoinGecko")

Although the above LINK chart does not show a sharp price drop its value fell by close to 3% within one month. The prevailing LINK market impact is the cryptocurrency whales’ massive acquisition of the token using the buy the dip strategy. This is one of the cryptocurrency investment strategies the whales use in order to maximize their returns. It is important to note that the rate at which the whales are buying LINK shows that they have confidence in its future.

Read also: [Chainlink Price Prediction & Forecast for 2024, 2025, 2030](https://www.gate.io/price-prediction/chainlink-link "Chainlink Price Prediction & Forecast for 2024, 2025, 2030")

From 20 June onwards, the LINK whale wallets that hold between 10,000 and 1,000,000 have increased by about 3.4% to surpass 3,474. Data on Santiment, a market intelligence firm, shows that Chainlink whale holdings have been increasing steadily over a period. As a result, by the second week of July the LINK whales were holding over 21% of its total supply. If [whale investors buy](https://www.gate.io/how-to-buy/chainlink-link "whale investors buy") Chainlink when its price is falling it shows that the asset is in an oversold market state.

## A Critical Market Analysis: Factors Behind Chainlink Whale Acquisition
The Chainlink’s LINK's market value to actual value (MVRV) ratio supports the fact that the asset is undervalued. One of the best cryptocurrency investment strategies that seasoned crypto investors adopt during such a market phase is the buy-and- hold strategy. What this means is that the whales can buy Chainlink when its price is depressed and hold it until its value rises to a reasonable level. They can then sell their holdings.

Read also: [Is Chainlink the Key to the Future of Crypto?](https://www.gate.io/learn/articles/is-chainlink-the-key-to-the-future-of-crypto/1206 "Is Chainlink the Key to the Future of Crypto?")

For the greater part of June and July the LINK MVRV ratio has been negative. For example, during the second week of July the LINK’s [MVRV ratios](https://www.gate.io/learn/articles/understanding-mvrv-a-guide-to-using-this-indicator-for-crypto-market-cycles/3323 "MVRV ratios") for the 30-day and 90-day moving averages were around -6.71% and -12.93%, respectively, as the following graph indicates. 
![](https://gimg2.gateimg.com/image/article/17217242013.jpeg)
Chainlink MVRV Ratio – [Santiment](https://app.santiment.net/ "Santiment")

As <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> shows, the LINK’s MVRV ratio was negative during June and July. Basically, the MVRV ratio measures the relationship between the asset’s current market price and the average price at which all the coins or tokens in circulation were acquired. A negative MVRV ratio shows a buying opportunity while a positive one shows a sell opportunity.

Also, the Chainlink’s Integrations and Partnerships are attracting many individuals and institutions to invest in LINK. As we know, Chainlink offers oracle services to many DeFi protocols. Since many  investors understand the blockchain’s key role in the cryptocurrency sector, they usually buy LINK in large quantities. The following image shows the various DeFi protocols that have partnered with Chainlink.
![](https://gimg2.gateimg.com/image/article/17217242304.jpeg)
Source: [x.com](https://x.com/chainlink/status/1810060634228228192 "x.com")

As the above diagram indicates, there are various DeFi protocols that recently integrated with Chainlink which include Gravita Protocol, Umami Finance and ZkSync.

Investing in Chainlink also makes much sense considering that its blockchain technology helps to provide data for Real-World Asset projects. The potential of RWAs has attracted many blockchain based firms to invest in the sector. Of course, there are other catalysts for [LINK price movement](https://www.gate.io/price/chainlink-link "LINK price movement") that include Chainlink network updates and positive price predictions.

Read also: [How to use On-chain Data for market Analysis](https://www.gate.io/zh/blog_detail/1674/how-to-use-on-chain-data-for-market-analysis "How to use On-chain Data for market Analysis")
## Historical Context: Chainlink Whale Holdings Trends
Basically, the Chainlink whale activity began rising in March. Ever since that time it has been steadily increasing. For example, soon after the Federal Reserve announced a rate pause in early May the Link whale activity surged remarkably. By 17 May the number of whale wallets had risen to 567 indicating that the large-scale investors wanted to take advantage of the possible Fed rate cut.

For example, the [IntoTheBlock data](https://app.intotheblock.com/coin/LINK "IntoTheBlock data") shows that large volume transactions increased by 1,453.68% within a 24-hour period that stretched between 21 and 22 June. Such large whale transactions indicate a coordinated buying and selling strategy to capitalize on emerging market conditions. Despite the increase in whale activity the other on-chain statistics such as the number of LINK wallet holders have remained almost constant. This indicates that the whale activity has not translated into LINK broader market participation.

## Looking into the Future: What Rising Whale Activity Indicates?
The rise in LINK whale activity is a bullish signal as it shows positive market sentiment among the influential cohort. Since their decisions are based on thorough research and the use of advanced analytical tools their action points to a better future for LINK.

Also, the large whale acquisitions of LINK will lead to a drop in its supply which will likely result in its price rally. This is because whales hold LINK for long periods which reduces its supply on the market. If the Fed has a rate cut the crypto market will grow. More importantly, the asset tokenization sector where Chainlink dominates will expand leading to a surge in its demand. 
## Conclusion
The surge in whale activity may influence LINK’s price to recover from the current dip. As large-scale investors acquire more of the token its supply on the market decreases which may lead to a price rise. Chainlink’s dominance in the asset tokenization sector and other DeFi integrations are strong catalysts for its future price increase.
## FAQs about Chainlink
### What is the highest price if Chainlink?
Chainlink attained its all-time high of $52.70 on 10 May 2021. Since it is trading at $14.51 it is about 72.4% lower than its ATH.
### Can Chainlink reach $100?
There is a high probability that Chainlink will reach $100 within the next two years. However, the altcoin is likely to reach $60 by the end of 2024.
### How high can Chainlink go?
Chainlink has the potential to rise above $500 by 2030. In the very long run it has the capacity to surpass $10,000.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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