Cryptocurrency Whales Are Accumulating Chainlink ($LINK) Tokens, Here's Why

Cryptocurrency whales, individuals or institutions who hold the largest number of digital assets, are one of the key drivers of engagement in the crypto space.

Cryptocurrency whales, or individuals/institutions who hold the largest number of digital assets, are a key driver of engagement in the crypto space. Their activities, whether making massive purchases or selling their long-held assets, always grab the attention of the crypto world.

Recently, it appears that many whales are showing interest in Chainlink ($LINK). But what exactly is $LINK?

$LINK is the native cryptocurrency of the Ethereum-built decentralized blockchain oracle network Chainlink, which was founded in 2017. As of early Monday, the token has a market cap of over $7.6 billion and is ranked No. 17 out of thousands of digital currencies on CoinGecko.

While the digital coin's price has gone down by over 2% in the last 24 hours, trading volume climbed by more than 17% in the last day. According to data from CoinMarketCap, centralized exchanges are responsible for the larger chunk of the trading activity.

On-chain data and crypto market insight provider Lookonchain revealed that crypto whales have been snapping up $LINK in the millions in recent weeks.

Whales/institutions continue to accumulate $LINK!

A total of 90 fresh wallets withdrew ~6.72 $LINK(86.7M) from #Binance recently!

↗️https://t.co/W6JaoFM1zS

↗️https://t.co/6Scx8SLtNl pic.twitter.com/m2eqwKvnYE

A total of 90 wallets acquired 6.72 million $LINK, worth around $86.7 million, from crypto exchange giant Binance, as per Lookonchain's Sunday round-up. The exact reason why whales are accumulating such massive amounts of the token is unclear, but several traders and industry observers have an idea or two.

Crypto investor and analyst Patric H. confirmed when asked by an X (formerly Twitter) about whales accumulating $LINK that the buying spree has been going on "for a while now," adding that he purchased some coins too. He was asked if he sold off 33% of his portfolio in loss to "buy back later," to which he replied "yes," suggesting that $LINK investments could be a "reserve" strategy of some sort that some whales are adopting.

Chainlink's native token Link (uppercase Link) lost it's momentum trend line, retested it and continue on it downward trend.

Thus it formed a head and shoulder pattern.

(A bearish pattern)

Yet, we see whales are starting to accumulate Link (which is what they do when we [retail investors] are scared of buying the dips)

Link is an interesting token.

It's…

[Bear market rally top candidate.]

Link lost steam from momentum trend,

(Trend continuation)

Hit support 3 times (bullish)

(AなーBーCーDーE)

After forming a head and shoulder pattern

(Bearish)

Whales are starting to accumulate Link

(Usually happens when retail is scared to buy dips)

Link is also a token that had a crazy run up in 2021

(Usually retail favorite for next bull cycle)

After forming a descending broadening wedge

(A bullish continuation pattern)

Hitting support at fib golden ratio 0.786

(Usually a strong support for any assets)

After forming a morning star candle pattern

(A bullish reversal candle pattern)

Link is also a token that performed terribly in 2022

(Usually retail favorite for next bull cycle)

After forming a double bottom pattern

(A bullish reversal chart pattern)

Hitting support at fib golden ratio 0.618

(Usually a strong support for any assets)

After forming a bullish engulfing candle pattern

(A bullish reversal candle pattern)

Link is also a token that didn't have any major pumps in 2023

(Usually retail favorite for next bull cycle)

After forming a bullish flag and pennant

(A bullish continuation chart pattern)

Hitting support at fib golden ratio 0.5

(Usually a strong support for any assets)

After forming a bullish morning star candle pattern

(A bullish reversal candle pattern)

Link is also a token that didn't have any major pumps in 2023

(Usually retail favorite for next bull cycle)

After forming a bullish morning star candle pattern

(A bullish reversal candle pattern)

Hitting support at fib golden ratio 0.382

(Usually a weak support for any assets)

After forming a bullish morning star candle pattern

(A bullish