Welcome to Extreme Investor Network, where we provide you with exclusive insights and analysis on the stock market, trading, and everything related to Wall Street. Today, we take a closer look at Chainlink and its recent surge in whale activity, signaling a potential bullish trend for the cryptocurrency.
According to data from Santiment, Chainlink had 554 active whale wallets as of May 3, which saw a significant increase following the US Fed rate pause announcement. As of May 17, the number of Chainlink whale wallets has skyrocketed to 567, with 23 new whale wallets created in the last two weeks. Each of these whale wallets has purchased at least $1.5 million worth of LINK tokens, indicating a strong vote of confidence from large investors.
The surge in whale activity on the Chainlink network holds two key implications for strategic investors. First, the increase in whale activity signals growing confidence among large investors about the asset’s future prospects. Whales are known to be well-informed and their actions often serve as a strong indicator of positive future performance. Second, the accumulation of large amounts of LINK tokens by new whale wallets can create a supply squeeze, leading to upward pressure on the price. With whales holding out for longer-term investment targets, the reduced supply in the open market can potentially drive prices higher.
Moreover, the timing of this surge in Chainlink whale activity suggests that large investors are strategically positioning themselves to capitalize on potential gains from an imminent US Fed rate cut. This aligns with the current Chainlink price forecast, which sees the cryptocurrency hovering around $16.40 as of May 18, following a $2.3 billion surge in its market capitalization post US CPI data release. With the rising whale activity and bullish market signals, analysts are eyeing a potential retest of the $20 mark in the days ahead.
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