According to Lookonchain data On December 20, whales are actively accumulating Chainlink (LINK) and Polygon (MATIC) and moving them on Binance, one of the world’s largest cryptocurrency exchanges by trading volume.
Citing on-chain transfers, Lookonchain points out that LINK is seeing a particularly significant build-up in a new wallet called “0x8eAD,” which has withdrawn 247,860 LINK worth approximately $3.5 million from Binance over the past two days.
Meanwhile, two new wallets “0xa813” and “0x38b3” are actively accumulating MATIC, including withdrawing 5 million MATIC worth approximately $3.13 million from Binance this morning.
Are whales accumulating and will MATIC and LINK rebound?
The fact that whales, individuals or entities that control large quantities of a particular token or coin are circling MATIC and LINK is net bullish and could support the price in future sessions.
In particular, a transfer is considered bullish when a whale moves coins from an exchange to a non-custodial wallet, such as a hardware wallet or hot wallet, to participate in decentralized finance (DeFi), degen trading, or NFT trading.
This change is because unlike centralized exchanges like Binance, which are generally aimed at trading with other coins or USDT, on-chain apps allow you to use the same vaults to earn rewards through things like providing liquidity or staking.
Therefore, considering the recent move, LINK and MATIC prices may recover and increase in the next few trading sessions. Looking at the candle patterns on the daily chart so far, LINK is stable and within an upward trend. Notably, the price is trading above the 20-day moving average, suggesting that the coin has found support. LINK is currently up 155% from its September low but down 15% from its November high.
On the other hand, MATIC is also stable and resists attempts to make lower lows. After several days of consolidation, the coin found support around $0.70, matching the critical level recorded in November.
However, whether the uptrend will resume will depend on whether the price rises above $0.93 or the November 2023 high in the next session.
Technically, $0.95 represents a critical reaction level for MATIC, which, if broken completely, could open the door to $1.20 and $1.60 in the next session.
Important features of the Polygon and Chainlink rollouts
In addition to the current technical makeup, fundamental events are also supporting Polygon and Chainlink bulls, especially with regard to decentralized finance (DeFi) and layer 2 expansion.
Chainlink’s new staking upgrade aims to remove more LINK from circulation, increasing its price in response to growing demand for the Cross-Chain Interoperability Protocol (CCIP).
Meanwhile, as other blockchains are repurposed as Ethereum layer-2, Polygon CDK is becoming an important cog in fast-tracking the process and directly supporting MATIC prices.
Featured image from Canva, chart from TradingView
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