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A whale with a large Chainlink holding has deposited 250,000 LINK valued at $5.37 million on Binance and OKX as spotted by Lookonchain on X. The move signals that the LINK whale might intend to trade the tokens.
Chainlink whale faces unrealized losses
Interestingly, the same whale has engaged in different activities before this latest deposit. Notably, between Dec. 14 and Dec. 18, the whale withdrew massive LINK from Binance. The whale pulled out 595,000 LINK worth approximately $17.31 million from the exchange.
Tomiwabold OlajideAt the time of the withdrawal, the average trading price of LINK was $29.10 per token. However, the asset has since dropped, drawing on the market volatility and the accompanying losses.
As of this writing, LINK was changing hands for $21.22, up by 8.60% in 24 hours, according to data from CoinMarketCap.
This price differential means the whale is experiencing an unrealized loss of about $4.5 million. Notably, the whale has lost an average of $7.88 per token due to price depreciation on Chainlink.
Hence, he would suffer a massive loss if the whale chooses to sell the 250,000 LINK on both exchanges as the transfer suggests. This has prompted staking speculation among some sectors of the community. The whale might stake until there is a shift in market dynamics.
For instance, the market volume of Chainlink is up by 1.77% to $740.69 million, which implies a slight uptick in traders’ interest.
Future outlook for Chainlink
As reported by U.Today, Chainlink achieved the $29 price level for the first time in three years on the back of whale activities.
Godfrey BenjaminWhales at the time mopped up the tokens dumped on the market by retail investors to sustain the price increase. The cumulative value of the tokens comes in at about 5.69 million LINK over the past few weeks.
Analysts anticipate that Chainlink might rebound soon with the 142% increase it has witnessed in active address counts recently. Time will tell how this translates to a price increase.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya