Key Takeaways:
- Chainlink’s whales took control over a quarter of its native token LINK’s supply.
- LINK surged 13% in the previous three days.
YEREVAN (CoinChapter.com) – Chainlink’s native token LINK gained 13.3% in the previous three days, compliant with CoinChapter’s earlier prediction. However, the growing accumulation among LINK whales (addresses owning 100 thousand to 10 million coins) could compromise the network’s decentralized nature.
Analytical platform Santiment reported that whale addresses hold a quarter of the total LINK supply. As mentioned, owning a large portion of an asset supply carries risks. Whales can sway the price action in a certain direction and manipulate the market by inducing a sell-off wave — or pumping the price.
Whale accumulation in itself could be a reason for a price uptrend, as it might create a liquidity squeeze, hogging the supply. However, it was not the only factor behind Chainlink’s recent uptrend.
Also read: LINK logs 11% intraday gains as Chainlink enters two lucrative partnerships.
What else propelled Chainlink?
A recovery wave swept across the altcoin market after the Bitcoin rally cooled off. It painted green candles on the LINK chart and many other altcoins in the previous week (ETH+9%, SOL+28%, DOT+14%, LUNA+22%).
Chainlink’s growing adoption also played a part in the uptrend. The network announced Thursday that it entered a partnership with Associated Press (AP), a New York-based news agency. Per the deal, AP will channel its sports and race call datasets through the Chainlink oracle to other blockchains.
Also read: Chainlink partners with Polytrade and Leonicorn, but LINK won't budge
The data can be used to automate key processes that happen on-chain, including informing markets of election race calls, triggering an on-chain trade when a company’s quarterly financials are released, or augmenting the appearance of non-fungible tokens based on real-world events.
detailed AP representatives.
The high-profile partnership with AP, coupled with the whale accumulation spree, assisted in sending LINK to its monthly high of $29.10.
LINK daily chart
Chainlink continued growing its market valuation despite the risks of whale control.
Also read: Another reason why Bitcoin reached $67K: A Gold Exodus.
The relative strength index (RSI; purple graph at the bottom) on the LINK chart looked confident as it reached 60 in a sharp uptrend. In hindsight, the RSI is a momentum indicator that reflects the traders’ willingness to invest in the asset. The indicator is strongest between 50 and 70.
