With today's massive cryptocurrency market rally, the price of #Chainlink
's native token #LINK
, which is used to pay for Oracle services, has skyrocketed. With its current price of $6.80 and 24-hour trading volume of $198 million, the cryptocurrency has gained 9.02%.
Massive token transfers from the network wallet to exchanges may have an impact on the LINK price in the coming days. On September 16th, $119 million worth of LINK tokens were moved from four Chainlink wallets across multiple platforms.
The initial purpose of these wallets was to store pre-launch coins. Recently, however, over 15.7 million LINK tokens (about $100 million) were transferred out of these wallets and sent to Binance. In addition, a multi-signature wallet with the identifier 0xD50f had 3.05 million LINK tokens (about $19 million) disappear.
Investors are anticipating the LINK price response after these monumental on-chain actions and their possible repercussions.
LINK Surpasses the Critical $6.30 Price Point
A bullish engulfing pattern is building in LINK's current uptrend, which should help the stock price push through the $6.3 resistance level. While LINK is currently below its 200-day SMA, today's green candle has broken above the 50-day SMA, indicating rising buying pressure.
As a result of buying pressure from investors near the $6.1 support level, the cryptocurrency staged a strong recovery on September 17 and 18. In addition, the 58.00 value of the Relative Strength Index (RSI) indicates that the market is becoming overbought and is moving away from the neutral zone.
The $6.3 level was a barrier today, but $LINK
managed to push beyond it. As a result, the purchasers will likely keep the rally going in the days to come. Also, the Moving Average Convergence/Divergence indicator's green Histogram bars indicate a strong purchase signal.
If investors keep buying tokens, the cryptocurrency's price will continue to rise in the days ahead. Long-term, however, purchasers may back down after the September 16 unlock and transfer of 21 million LINK tokens.
Stocks of whales are rising after a quick check.
Gains in LINK's price have been observed since August 31, when Chainlink formed a collaboration with Swift and others. In an experiment, tokenized value was successfully moved across several private and public blockchains using the interbank communication technology Swift and Chainlink.
This encouraging news increased demand for LINK tokens, which might lead to a price increase. Chainlink's top-tier holders, those who own between 100,000 and 10,000,000 LINK tokens, were seen by Santiment actively buying more tokens on September 7.
From December 3, 2022, the number of wallets holding between 10,000 and 100,000 LINK tokens has climbed to 3,127. In only three days, these wallets amassed $9.6 million worth of LINK, or 0.154% of the total supply. According to Santiment's data, 98 more such wallets were established within that time period.
A crypto specialist named Ali reported on September 9 that these whales spent $24 million buying almost 4 million LINK coins in only 10 days.
These stockpiles indicate that investors are becoming more enthusiastic about Chainlink, which should boost demand and the token's price in the days ahead.