Altcoin Chainlink (LINK)’s 14% run in the market did not end with price action alone. According to Santiment data, the number of whale-grade wallets increased following the price increase, reaching a four-year high. While supply is mostly tied to whale-level addresses, retail traders and investors may face significant losses during the correction period due to increased potential selling pressure.
Altcoin LINK price may come under pressure!
According to the chart provided, we can clearly see that there is a negative correlation between the increasing number of whales and the negative price action that took place between May-July and September.
Previously, Chainlink’s (LINK) prices remained at a peak of $52 while the number of whale addresses remained at 23.9%. After the sale in the cryptocurrency market, LINK lost close to 70% of its value, and whale-level addresses lost 8% of their total assets.
What does the historical data say?
With the gradual increase in the number of whales in the market, during periods of correction, the market faces increased selling pressure from the wallets mentioned above. The same may be present in the market when a more substantial correction arrives on the market.
According to data from various exchanges, the altcoin Chainlink is becoming the “victim” of massive sell-offs that led to a 50% correction inside a daily candle. Such a trend in the number of whale-level addresses could raise concerns among investors, according to analyst Arman Shirinyan.
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