Bankrupt lender BlockFi transferred Chainlink (LINK) tokens worth $46.5 million to the Kraken crypto exchange. The transaction, which was spotted by on-chain analyst EmberCN, has sparked debate in the crypto community about its potential impact on the market. On the other hand, Whales keep ramping up Chainlink (LINK) accumulation amid market volatility.
Chainlink is trading at a critical level
In addition to 2,402,945 LINK, BlockFi moved to the exchange 90,993 UNI, 16,570 AVAX and 468,506 MATIC worth $680 thousand, $630 thousand and $470 thousand, respectively.
In September 2023, the company received the green light to begin making payments to customers as part of its liquidation plan. After that, in October, BlockFi announced its exit from bankruptcy proceedings, resumed withdrawals and paid out money to some customers. This was a significant step towards restoring normal operations.
Price and Whales Accumulation
As BlockFi liquidates assets, including LINK tokens, community members are closely monitoring the potential impact of the sales on the market. Meanwhile, some whales are going the other way, accumulating Chainlink.
According to SpotOnChain, an unknown user withdrew 194,400 tokens worth about $3.67 million from Binance. A month earlier, the same address bought 928,016 LINK at an average price of $17.35.
From a technical point of view, the token price is at a critical level and is testing the lower boundary of the downward channel. If market sentiment changes to a more positive one, the asset may rebound to the upper boundary of the pattern around $19.70.
Additionally, whale-watching platforms have seen recently an increase in the accumulation of LINK tokens over the past week. According to LookOnChain, one of the whales purchased LINK worth more than $112 million across 55 wallet addresses on the Binance crypto exchange. Such an influx of large capital into an asset signals institutional confidence and often precedes price increases.
About Chainlink
The decentralized oracle network Chainlink has become one of the most popular blockchain projects almost since its inception. It positions itself as an ecosystem for efficiently and securely integrating real-world data into smart contracts. Decentralized oracle networks are based on a set of independent parties, and “truth” is determined by consensus (majority votes) in the network. If parties try to provide incorrect information, they risk losing their online credibility and source of income.
Chainlink (LINK) is actively used by various DeFi services, for example, to supply information about cryptocurrency rates to financial systems. It is also an integral component of distributed betting services, etc., and the LINK token performs important technical functions for data exchange on the network.
