Crypto whales are increasing their holdings of this altcoin amidst the cryptocurrency market downturn
The cryptocurrency sector has contracted recently amid waning midterm optimism. Chainlink (LINK) has mirrored this trend, dropping by more than 21 percent over the past month to stabilize around $14.33 during Wednesday’s early London session.
However, the outlook for crypto appears poised to rebound with the influx of new investors. The Federal Reserve is expected to maintain a dovish stance in the upcoming quarters as inflation subsides ahead of the general election, paving the way for anticipated interest rate cuts. Additionally, both European and Canadian governments have already initiated such cuts.
Chainlink Whales on the Move
Notably, large institutional investors are accumulating LINK. Recently, 54 new wallets withdrew 2.08 million LINK (approximately $30.28 million) from Binance over the past week, as reported by Lookonchain.
According to on-chain analytics, the Chainlink network boasts over 720,000 holders with non-zero balances, underscoring its growing ecosystem.
Growing Ecosystem
Chainlink’s significance lies in its provision of critical oracle data to web3 and smart contract developers, attracting institutional interest in web3 projects that involve tokenizing real-world assets (RWA).
In a notable development, Fidelity International and Sygnum have partnered with Chainlink to furnish on-chain NAV data for Fidelity International’s $6.9 billion money market fund, marking a pivotal use case for tokenized assets.
Midterm Expectations
Analysts note a recurring pattern in LINK’s market behavior, with the first half of the year often seeing declines and the latter half signaling bullish trends. Currently in the latter phase, LINK’s price is gradually trending upwards, indicating promising times ahead.
According to Michaël van de Poppe, a prominent crypto analyst, LINK’s price has been consolidating within a weekly megaphone pattern since the year began, contrasting with Bitcoin’s surge to new highs. Van de Poppe predicts a forthcoming bullish breakout for LINK, coinciding with a potential reversal in weekly Bitcoin dominance that could trigger the much-awaited altseason.
Tags: Altcoins, Price Analysis