In a notable shift away from Bitcoin, altcoins have garnered the attention of investors, leading to a slight increase in market caps, despite an overall decrease in trading volumes. Among the altcoins, Chainlink (LINK) has emerged as a standout performer, displaying impressive resilience and attracting substantial holders and institutions.
Chainlink Surges, Whales Accumulate Amid Market Shift
Chainlink, known as the leading Oracle network in the blockchain space, has not only outpaced the broader market but has also demonstrated impressive individual performance.
Over the last 24 hours, LINK has experienced a noteworthy surge, with a 6.1% increase in value and a striking 30% rise in the weekly chart. Currently ranked 11th among altcoins, LINK boasts a 24-hour trading volume of $3.31 billion and a market capitalization of $10.21 billion.
LINK price action. Source: Coingecko
📊 #Crypto market caps have edged up +0.5% over the past week, despite trading volumes dropping off -20.3% compared to the week prior. Highlight assets have included $FLR, $RON, $LINK, $TAO, and $RNDR. #Bitcoin continues seeing less attention as eyes turn to pumping #altcoins. pic.twitter.com/jMvJSTdV7c
— Santiment (@santimentfeed) February 5, 2024
According to recent data from Lookonchain, a significant accumulation of LINK by a whale or institution has been observed, as evidenced by the withdrawal of 119,583 LINK (equivalent to $2.15 million) from Binance within the past hour. This strategic move indicates a growing confidence and interest in the long-term potential of the token.
It seems that a whale/institution is accumulating $LINK!
We noticed 4 fresh wallets withdrew a total of 119,583 $LINK($2.15M) from #Binance in the past 1 hour.https://t.co/G09rO9rlwNhttps://t.co/Bby3SaN7cmhttps://t.co/0NowecVP2ahttps://t.co/dVX9K2CNeK pic.twitter.com/KJsY0w7F5W
— Lookonchain (@lookonchain) February 5, 2024
Interestingly, as Bitcoin loses ground, LINK deviates from the prevailing market trend, indicating its unique position in the current market landscape. One major impetus behind the altcoin’s upward movement is the activation of previously dormant wallets that had remained inactive for an extended period.
This sudden resurgence has led to the highest age-consumed spike of 5.38 billion, calculated by multiplying the coins moved by the number of days those coins had been dormant.
The reintegration of LINK tokens into circulation is believed to have played a pivotal role in the recent surge in their price. However, market analysts remain cautious and are closely monitoring two crucial indicators in the upcoming weeks to assess the token’s potential for sustained growth.
Chainlink currently trading at $19.66 on the daily chart: TradingView.com
Dormant Wallets And FUD Dynamics: LINK’s Monitoring
Keeping tabs on dormant wallets and seeing how they affect the network’s circulation as a whole is the primary goal of the first statistic. The activation of dormant wallets has proven to be a significant driver of LINK’s recent price increase, and its continued impact will be closely watched.
A second indicator that could cause wallet liquidations and have a further effect on the price of LINK is the existence of FUD dynamics, which stand for fear, uncertainty, and doubt.
Analysts emphasize the importance of vigilant observation and analysis to identify any signs of FUD and its potential effects on the altcoin market.
While Chainlink’s recent performance and accumulation by institutions have bolstered its value, experts caution that the sustainability of its price increase remains uncertain. Continued monitoring of the movements of previously inactive wallets and the potential impact of FUD will be crucial in determining the token’s trajectory in the coming weeks.
As the altcoin market continues to evolve, Chainlink stands out as a cryptocurrency that has captured the attention of investors and institutions alike. Its impressive performance, along with the activation of dormant wallets, has contributed to its surge in value.
However, market analysts stress the need for continued scrutiny and analysis to gauge the potential for sustained growth in this dynamic market environment.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.