Whale support was one of the main factors contributing to the recovery of ChainLink (LINK).
On the MEXC exchange MEXC the coin at the end of last week traded at 16.52 USDT, and on October 20 it jumped above 19 USDT. This mark was a local peak for altcoin, because on October 24 it fell to 17.37 USDT as a result of another profit taking.
The subsequent rebound LINK hints that the coin was able to grope the bottom, and by the end of this week it again approached 17.5 USDT. But so far, the digital currency lacks support for a quick jump to $20.
Over the past month, the average yield of LINK traders has been negative. Usually during such periods, wallets that prefer to buy an asset at low prices become active.
The growth of unprofitability creates conditions for the flight of traders subjected to panic. Here a convenient point is formed for entering the cryptocurrency, Santiment notes.
Traders are targeting the $16 mark
According to analysts, most LINK traders are guided by the $16 mark. It has great psychological importance and will have a strong influence on investor tactics in the medium term.
54.47 million LINK were purchased at a price of about $16, so a zone of strong cryptocurrency support was formed in this area. The return of whales and sharks to cumulative tactics played an important role, the MEXC Research team notes.
Over the past week, whale wallets purchased 13 million coins. Whale swim was one of the main factors contributing to the stabilization of the course and the subsequent rebound above $17.
On the MEXC platform MEXC on the eve of the cryptocurrency briefly rose above $18, but at the weekend it adjusted below this psychological mark.
According to Santiment, addresses with a balance of 100,000 to 1 million coins in 12 months bought about 40 million LINK. The number of wallets increased by 103.
Whales and sharks acquired 12.9 million LINK in six months and 8.7 million LINK in three months.
Over the past 30 days, the volume of purchases amounted to 2.8 million coins, and another large wallet appeared in the ChainLink ecosystem.
Since the end of last week, network activity has increased, which usually precedes volatility. If on October 19 the number of wallets regularly sending and receiving funds was 4,157, then on October 23 it exceeded 5,000 (according to CryptoQuant).
At the same time, analysts recorded an increase in the value of the digital currency. According to their estimates, the $16 mark can be the starting point for a new rally, the result of which should be the rise of the coin above $20.
Another driver of ChainLink growth may be the outflow of cryptocurrency from exchange addresses. The number of LINK on trading floors has been declining since October 11, that is, the volume of crypto available for sale decreases, this eases the pressure on the asset.
The small inflows of LINK to exchanges that we have seen in recent days are unlikely to qualitatively change the trend.
Correction of the rate is allowed given that some traders record profits at moments of growth. But in general, LINK is moving to $20 and can break above this mark in the coming days.
Caliber invests more than $10 million in LINK
ChainLink is on the list of digital currencies that institutions are interested in. The leading positions in this rating are occupied by bitcoin (BTC) and ether (ETH), but large investors are beginning to gradually redistribute capital in favor of other digital currencies.
Recently it became known about the partnership of ChainLink developers with the rating agency S & P Global Ratings. Its customers will be able to use ecosystem tools to assess the liquidity of stablecoins.
In mid-October, Caliber, a real estate and asset manager, announced an increase in capital investment in LINK.
Caliber shares are traded on the Nasdaq stock exchange. This is the first institutional that reported on the acquisition of the digital currency LINK.
The last purchase was 94,903 LINK worth about $2 million. The average price was $21.07 per coin.
The company has been investing in altcoin since August. Over the past three months, it has purchased 562,535 LINK at $10.2 million.
Caliber manages $2.9 billion in assets, including commercial and residential real estate.
- The company announced that with the help of LINK, it is testing the capabilities of the DeFi market. A key point in its strategy is to generate revenue from staking.
- Earlier, Bitwise and Grayscale sent applications to the US Securities and Exchange Commission to launch spot crypto funds ChainLink-ETF.
If such tools appear on the US stock market, then institutions will receive another channel for testing the capabilities of a digital asset.
Disclaimer: This information is not investment, tax, legal, financial, accounting, advisory or any other related services advice, nor is it advice to buy, sell or hold any assets. MEXC Training provides information for reference purposes only and is not investment advice. Please ensure that you fully understand all risks and exercise caution when investing. The platform is not responsible for users’ investment decisions.
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