Chainlink: Will these whale movements cause selling pressure?

• LINK faced challenges as large holders moved significant amounts of tokens to exchanges.
• Chainlink maintained long-term development plans to enhance its ecosystem despite market uncertainties.

Recent data from Lookonchain highlighted a significant trend in the Chainlink [LINK] market, suggesting that large holders may be losing confidence in the cryptocurrency.

Realistic or not, here’s LINK’s market cap in BTC’s terms

Whales dump their LINK

As per Lookonchain’s 10 October tweet, several significant holders were transferring their LINK tokens to the Binance [BNB] exchange. One wallet, known as “0x009D,” deposited a substantial 122,129 LINK tokens, worth approximately $891,000.

It is pertinent to note that this wallet had a history of successful LINK transactions.

Additionally, two wallets, namely “0x5e85” and “0xFfAa,” which appear to belong to the same entity, have been accumulating LINK during its July price surge. These wallets recently moved a significant 300,000 LINK tokens to Binance, with a total value of approximately $2.19 million.

We noticed that 3 wallets deposited a total of 422,129 $LINK ($3.08M) into #Binance today.

1/?
Let’s take a look at who is selling $LINK. pic.twitter.com/BAPQCb5rOg

— Lookonchain (@lookonchain) October 10, 2023

This wave of large holders offloading LINK onto exchanges raised concerns about potential selling pressure and its impact on LINK’s market value. Increased selling by large holders could lead to bearish sentiment in the market, potentially affecting smaller investors.

New developments

Despite these challenges, Chainlink remained committed to its long-term development plans.

These plans included transitioning to Mainnet General Availability (GA) for expanded access to its Cross-Chain Interoperability Protocol (CCIP) and increasing chain support for additional blockchains.

Q3 2023 Product Update

This week at SmartCon, @chainlinklabs Chief Product Officer @kelmoujahid showcased the newest #Chainlink releases and how Chainlink's decentralized computation platform is laying the foundation for the verifiable web.

Dive in ⬇️https://t.co/ek6Ku0G1pb

— Chainlink (@chainlink) October 5, 2023

Furthermore, Chainlink aimed to modularize its technology stack to enable faster integration with new blockchains while maintaining security. It also sought to enhance its Risk Management Network to address evolving security threats.

In terms of data services, Chainlink planned to integrate its services into more blockchains and layer-2 networks, focusing initially on participants in the Chainlink SCALE program.

Additionally, Chainlink intended to provide an intuitive user interface for Data Feeds, support multiple data points alongside price data, and expand its support for real-world asset datasets based on user demand.

Is your portfolio green? Check out the LINK Profit Calculator

As of the latest data available, LINK was trading at $7.331, having recently experienced a price decline. Despite this, trading volume for LINK had surged, indicating ongoing market activity.

The future performance of LINK will likely depend on factors such as investor sentiment and the adoption of its technology within the blockchain ecosystem.

Source: Santiment