The number of Chainlink whales is increasing depending on the price
Chainlink’s 14% run on the market did not end with price action only. Following the rise in prices, the number of whale-level wallets also increased and reached a four-year high, according to Health. While the supply is tied more to whale-tier addresses, in the correction period, retail traders and investors may face significant losses due to increased potential selling pressure.
Unpleasant correlation
According to the graph provided, we can clearly see a negative correlation between the increasing number of whales and the negative price action that took place from May to July and September.
Previously, Chainlink’s prices stayed at the $52 peak with whale-tier addresses staying at 23.9%. After the massive sell-off in the cryptocurrency market, LINK lost almost 70% of its value, with whale-level addresses losing 8% of their total holdings.
Concerning history
With the progressive increase in the number of whales on the market, in periods of correction, the market faces increased selling pressure incoming from the aforementioned wallets. The same could be present in the market whenever a larger correction hits the market.
According to data from various exchanges, Chainlink is becoming a “victim” of large-volume sell-offs, which lead to a 50% correction inside of one daily candle. Such a trend in the number of whale-level addresses may raise concerns among investors.
