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Signs of Profit-Taking: Large Crypto Trader Deposits $7M in LINK to Binance as Token Achieves 17-Month High

Oct 26, 2023 at 12:58 pm

On Monday, the LINK token from Chainlink demonstrated remarkable strength by surging 9% to reach a price point of $11. This surge represents one of the most significant monthly gains within the realm of large-cap cryptocurrencies, with an impressive 43% increase over the past month.

Despite attaining a 17-month high, some telltale signs indicate that investors are now considering profit-taking strategies following LINK's extraordinary performance. In the last 24 hours, the token's price recorded a noteworthy 9% surge, momentarily reaching the $11 mark. This achievement is particularly noteworthy considering that LINK had been trading within a relatively narrow range, oscillating between approximately $5 and $9 since May 2022.

The Chainlink ecosystem's native token, which plays a pivotal role in the decentralized oracle network, has been benefiting from the recent wave of excitement surrounding the tokenization of real-world assets (RWAs). Tokenization involves the representation of conventional assets such as stocks, bonds, or real estate on blockchain platforms. The role of oracles in facilitating the seamless flow of real-world data to blockchain-based networks and applications is indispensable in this context.

Nonetheless, insights gleaned from blockchain data indicate that LINK's impressive rally may be poised for a brief pause. The rationale behind this hypothesis lies in the observed increase in the number of tokens being deposited on exchanges, which often signifies an investor's intent to sell. Conversely, withdrawals typically signify a purchase.

Monday witnessed a notable net inflow of LINK tokens, totaling nearly 1.4 million, into centralized exchanges. This data, reported by the digital asset analytics firm CryptoQuant, reveals a trend that has persisted for four consecutive days.

Data by CryptoQuantData by CryptoQuant

Of particular note, Arkham Intelligence, an on-chain analytics company, drew attention to the actions of a significant trader and LINK holder on the social media platform formerly known as Twitter. This trader initiated the process by depositing 300,000 LINK tokens, equivalent to approximately $3.1 million at the time, into the Binance cryptocurrency exchange. Subsequently, they withdrew $3 million in the form of the USDT stablecoin. Following these transactions, the same entity executed another transfer, sending an additional 380,447 LINK tokens valued at $3.9 million to Binance. Even after these activities, the investor retained $3.1 million worth of LINK tokens in their possession.

Read more: Israel Takes Action Against 100 Binance Accounts Over Alleged Hamas Links: FT

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