Analysts at Santiment say large holders own a quarter of Chainlink's offering. Why investors have been actively accumulating a token for the last four months and to what levels it can rise in price
On October 22, analyst firm Santiment reported that large Chainlink holders have amassed 25% of the total altcoin supply. Chainlink's wave of savings, analysts say, is continuing its fourth month.
A large purchase of altcoin worth $ 1.45 billion was recorded in early September after the collapse of the crypto market, when the price of bitcoin decreased by 16% per day. Topplabs.org experts explained why the "whales" are accumulating altcoin and whether it may rise in price in the near future.
What is Chainlink
Chainlink is an oracle system that allows other blockchains to securely receive information from other data providers and verify its authenticity. Chainlink is able to transform information from various sources into smart contracts. An important advantage of Chainlink is that the system is completely decentralized, so the data is approved by all network nodes before it reaches the end user.
Chainlink does not have its own blockchain, and the internal token of the LINK system is based on the Ethereum blockchain and complies with the ERC-20 standard. Chainlink emission is limited to 1 billion tokens. 35% of them were distributed among users in 2017 during the ICO (initial token sale). Another 300 million tokens are owned by the company that developed Chainlink.
During the ICO, which took place on September 18, 2017, the value of Chainlink tokens was about $ 0.11. In four years, the altcoin price has increased by 27,172%. Chainlink is trading at $ 30 on October 22nd. In May of this year, the token reached an all-time high of $ 52.7 (an increase of 47,809% over four years).
Why Chainlink is promising
Chainlink is one of the most promising projects in the cryptocurrency market, says Mikhail Karkhalev, financial analyst at Currency.com cryptoexchange. According to him, since its inception, the project has been actively developing, acquiring partners and integrating into the decentralized finance (DeFi) sector.
“Chainlink has stood the test of time and truly benefits the industry,” said the analyst.
Chainlink also has a reputation as a reliable investment asset, added Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. He explained this by the fact that the project is one of the few who managed to survive the crypto winter.
“Most market participants have no doubts that the project will collapse in the near future,” the expert explained.
What to expect from a token
At the moment, the key support range for Chainlink is the $ 22.5-25 zone, noted Karkhalev. In his opinion, it is profitable to buy a token at this level with the prospect of growth to $ 50-55.
“Chainlink differs from many coins in its stable and systematic growth, I don’t know if it will manage to reach an all-time high above $ 55 in the current growth cycle, but in the future the chances of this are very high,” the analyst added.
Chainlink has already overcome the resistance at $ 28, Soshnikov says. According to his forecast, in the next two weeks, the token has the potential to grow to $ 32-35. Altcoin will continue to rise in price if it manages to gain a foothold above $ 32, the expert is sure.