Chainlink Set to Rally? Whale Concentration and Development Activity Surge
• Chainlink’s development activity has been on the rise and whale accumulation amongst holders have surged.
• Despite this, LINK’s price has experienced a downward trend in recent weeks, with multiple lower highs and lower lows forming a bearish trend.
• The concentration of whale investors could make retail holders vulnerable to whale behavior and an instant sell-off of LINK.
Chainlink’s Development Activity Surges
Chainlink has been known for its high number of collaborations with different types of companies in the space, leading to an increasing array of oracles and services being provided. This increase in development resulted in LINK becoming one of the top 5 most actively developed assets within the crypto sector.
Whale Holders Accumulate Link
In conjunction with this surge in activity, there was also a noticeable uptick in the interest of large investors – whales and sharks holding between 100K to 10M LINK coins. This accumulation by significant holders suggested a growing confidence and commitment towards Chainlink’s potential. However, it could also imply that retail investors are losing interest due to the high concentration of whale investors making them more vulnerable to their behaviour.
Price Facing Downward Trend
Despite these advancements, LINK’s price began to fall materially after 21 July after hitting resistance at $8.464 level. A trend was established as multiple lower lows and lower highs were observed, further establishing a bearish trend which could potentially test the $6.995 support levels before rallying again if it persists.
Vulnerability of Retail Investors
The rising number of large investors amongst whales leaves retail investors vulnerable as they would be greatly affected by any instant sell-offs that occur as a result of their behaviour. Thus it is important for them to keep track on progress within Chainlink’s network while understanding their own vulnerability when investing into such digital asset markets that are heavily influenced by those who hold large amounts compared to them.
Chainlink’s development activity has increased substantially along with larger investor interests from whales accumulating more coins than usual indicating potential growth opportunities ahead in terms of its collaborations and oracles provided within its network however retailers must stay vigilant when investing into cryptocurrency markets where whales may exercise power over prices through their holdings when selling off abruptly as well as understand how volatile such markets can be when considering further investments into them