Whales have been accumulating a significant amount of Chainlink (LINK) in anticipation of a potential rally. Weiss, a respected finance and crypto ratings agency, has also upgraded Chainlink’s rating to “A-“, putting it in the same league as Bitcoin.
Over the past three months, Chainlink has experienced a surge of 124%, reaching $14.2. During this period, the price has increased by $7.88. In the last 30 days, the asset has seen a 37% surge, indicating a current bullish market sentiment with a score of 64/100. Prior to the bullish run, whales had been accumulating large quantities of Chainlink, as reported by Santiment.
The accumulation process began on October 17 when the asset was trading at around $7. Within this period, approximately 40 million LINK tokens were accumulated, increasing the total tokens held by leading addresses from 693 million to 736 million. As of now, these addresses hold a cumulative volume of 741 million.
This data suggests that Chainlink’s activities were on the rise at the end of October. Prior to this period, transaction numbers were consistently below 100, with occasional spikes. However, starting from October 23, the number of transactions began to increase. By November 9, the transaction count had exceeded 500, marking the highest number recorded this year. As of now, the transaction count has fallen to 96, but it still remains higher than most of the year.
Looking at the daily timeframe chart, there has been an 8% surge in the price of Link, indicating a parabolic movement. In the last 24 hours, Link has experienced a 0.78% decline, and in the last seven days, a 4% decline. However, its upward potential is supported by the Relative Strength Index (RSI), which is above 50. The Moving Average Convergence Divergence (MACD) is also above one, indicating a bullish momentum. Analysts predict that the asset could reach a maximum price of $25.56 by the end of the year.
In a recent announcement, Weiss upgraded Chainlink’s rating to “A”, making it the only crypto asset apart from Bitcoin to receive an “A” rating. The rating takes into account historical data, tech and adoption developments, and market performance.
Weiss has categorized a few assets in the “B” range, including 0x (ZRX), Cardano (ADA), Polygon (MATIC), Status (SNT), and Ethereum (ETH). However, three assets in this category, Aave (AAVE), Loom Network (LOOM), and Stellar Lumens (XLM), have been downgraded. So far, Weiss has rated 324 crypto assets, with only a few falling into the A and B categories. The majority, 109 assets, are in the C category, while the D and E categories make up almost 60% of the assets.
According to Weiss analyst Chris Coney, newcomers should start their investment journey with Bitcoin and avoid being driven by greed.
In my personal opinion, it is advisable to focus on establishing a foundational position in Bitcoin before considering other crypto assets.
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