In recent days, the price of Chainlink’s native token, LINK, has seen an 11% decline since August 10. This dip occurred after the $7 support was breached by bearish forces on Wednesday. However, the rise in buying pressure from bullish crypto whales looking to exploit the dip suggests that a price rally could be imminent.
Chainlink made an exciting announcement last week that it had integrated its price feeds into the Layer-2 Network, Base. This is a platform led by Coinbase, the renowned crypto-currency exchange. Data pulled from the blockchain suggests that, since the integration, LINK has been catching the attention of institutional investors using the Coinbase platform.
However, the question remains – is this enough to trigger a sustainable rebound in the price of LINK in the following weeks?
Chainlink Catches the Attention of Whale Investors
Coinbase, thanks to its status as a publicly-listed exchange, has established itself as the top crypto exchange choice for institutional investors in the US. This has had a noticeable positive impact on LINK over the past week.
In stark contrast to the industry-wide drop in demand, LINK has seen a significant surge in whale transactions throughout this week. The following data shows an almost three-fold increase in the trading activity of Chainlink whales, rising from 40 to 117 transactions between the 12th and 16th of August:
Chainlink (LINK) Whales Buying | Whale Transaction Count, August 2023, Source: Santiment
Whale Transaction Count is a metric designed to track changes in whale trading activity. It does this by calculating the daily quantity of confirmed transactions that exceed $100,000. This surge in Whale Transaction Count suggests that LINK is back on the radar of institutional investors.
KEY POINTS:
- Chainlink (LINK) price has dropped 11% since August 10.
- The buying pressure from bullish whales looking to exploit the dip could soon trigger a price rally.
- Chainlink recently integrated its price feeds to the Layer-2 Network, Base led by Coinbase, attracting institutional investors to LINK.
- A significant rise in whale transactions this week suggests LINK is back on the radar of institutional investors.
Considering the correlation between this upwards trend and the recent integration of the price feed into the Base layer-2 network, it is plausible that Coinbase whales played a significant role in this development. The increase in Large Transactions, which offer market liquidity and allow investors to execute trades with high volume at favorable prices, could potentially put LINK in an optimal position for a sustained price rebound in the next few weeks.
Despite its recent price reversal, Chainlink has been attracting healthy network activity this week. In fact, LINK Active Addresses (7d) have continued to intensify since August 9. As of August 16, this figure has surged from 11,088 to 12,102, representing a 9% growth in network activity.
The Active Addresses (7d) metric is used to aggregate the quantity of individual wallet addresses that carry out transactions over a period of seven days. This data provides real-time tracking of changes in the portion of users conducting economic activity on the network.
The chart above shows that, despite an 11% price correction in the past week, Chainlink’s network activity has grown by 9%. Such a positive divergence between price and network participation indicates that a bullish reversal could be imminent. Both Chainlink whales and retail investors are exhibiting signs of growing optimism – even in spite of the recent price decline. LINK could mount an early recovery once the altcoin market momentum resumes.
Price Prediction for LINK: Bullish Target Could Be $8
The In/Out of Money (IOMAP) data shows the distribution of purchase prices of LINK holders. This data is used to establish key support and resistance levels. According to this data, the $7.50 mark is the most formidable sell-wall which could prevent LINK from reaching the $8 price target.