In a surprising turn of events, Chainlink (LINK) saw three huge whale transactions occur within 11 minutes during the last hours of Friday.
Santiment, a leading on-chain analytics tool, identified whale transactions, including the massive transfer of 11.6 million tokens worth around $79.7 million to whale wallets.
The cryptocurrency world has been buzzing over the news, speculating what Chainlink may be planning. Chainlink is a decentralized network of oracles that links smart contracts to real-world data and events. Several DeFi projects depend on the platform’s services to access off-chain data safely.
The whale transactions may indicate a rise in institutional interest in Chainlink, which might boost its price in the coming weeks. Such massive transactions are often seen as positive indications, meaning that essential investors are amassing assets and expecting a price increase.
Massive LINK Purchases Made by Whales Triggers Price Explosion and Crash Chainlink (LINK) has been one of the best-performing cryptocurrencies in 2020, increasing by over 1,000%. Its remarkable accomplishment is a result of its distinctive value proposition and growing popularity among DeFi initiatives. Despite LINK’s revolutionary potential, however, it has been compromised by whale manipulations.
In July 2020, a gigantic whale with a wallet holding more than 700,000 LINK tokens shocked the market by transferring cash to numerous exchanges. This whale-induced frenzy pushed the price of LINK to over $8.5 per token, resulting in a 50% price increase in only a few hours. However, the whale then sold its LINK tokens, producing a price fall that wiped out the majority of the surge’s gains.
Due to LINK’s relatively low liquidity, it was feasible to manipulate the market since large buy or sell orders could alter the price significantly. This event demonstrates the urgent need for additional liquidity on the LINK market to prevent future manipulations of this kind.
Noting that such maneuvers are not exceptional in the crypto market is essential. In traditional finance, regulatory authorities have been formed to prohibit and penalize such practices; it is only a matter of time before the crypto market catches up. It remains to be seen if the LINK transactions were bullish or manipulative. Still, they might also be indicative of increasing institutional interest in Chainlink, which could boost its value shortly. Before investing in any cryptocurrency, investors must perform their research and make informed judgments.
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