Recent on-chain data reveals a significant increase in the Chainlink Whale Transaction Count, potentially signaling upcoming volatility for the asset's price.
According to an analysis from the on-chain analytics firm Santiment, the Chainlink Whale Transaction Count has surged. This metric tracks LINK transactions exceeding $100,000, typically associated with large investors, or "whales." An uptick in this count suggests heightened trading activity among these investors. Conversely, a decline may indicate waning interest.
Santiment's chart illustrates a recent spike in whale transactions as Chainlink's price has dipped. This rise in activity reached 1,659 transactions, a record high since December 2023. Such increased trading from large holders can introduce significant volatility to the asset's price. However, it's uncertain whether this volatility will push the price up or down, as the transaction count does not distinguish between buying and selling.
The spike post-decline could be promising for Chainlink. Santiment advises monitoring the asset when altcoins begin to rebound.
Santiment also highlighted other altcoins experiencing a rise in whale activity. Among them, Dai on the BNB blockchain noted a 400% increase, marking the highest surge among altcoins. Floki, a non-stablecoin asset, reported a 286% spike in whale transactions.
Currently, Chainlink is valued around $19.76, experiencing a 14% decrease over the past week.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.