According to some analysts, Chainlink (LINK) may be giving bullish signals due to coin movement and whale accumulation from previously dormant wallets.
Chainlink is sounding the alarm after its biggest dormant coin move in six weeks, according to cryptocurrency analytics firm Santiment. This means that average coin availability times in wallets are getting younger, a scenario associated with market cap growth, according to analysts.
On the other hand, cryptocurrency analyst Ali Martinez pointed out that Chainlink has formed strong support between $6.63 and $6.88, where around 29,000 addresses bought 295 million LINK.
As long as LINK stays above this level, there is a strong bullish sentiment as on-chain data shows there is no major hurdle of resistance ahead.
Martinez also observed that some of the biggest LINK whales seem to have noticed Chainlink's strong support and are accumulating more aggressively. In the past two weeks alone, whales have purchased 13 million LINK worth approximately $91 million.
But Martinez also cautioned that investors expecting a breakout may have to wait longer, as on-chain data shows a decline in network activity over the past three weeks.
The number of large transactions, that is, transactions over $100,000, fell from 527 to 118. This shows that there is less buying pressure and momentum in the market. Martinez commented that there may be a bullish breakout in this metric.
*Not investment advice.
