The bankrupt lender BlockFi has reportedly transferred a vast amount of Chainlink (LINK) tokens, valued at $46.5 million, to the Kraken exchange.
This transaction, revealed by on-chain analyst EmberCN, has ignited discussions about its potential market impact.
Chainlink Price Trades at a Pivotal Junction Amidst BlockFi Transaction
The transfer included 2,402,945 LINK tokens, highlighting its magnitude amidst a total of $48.37 million in various cryptocurrencies moved to Kraken. This action comes against the backdrop of BlockFi’s bankruptcy journey.
“The bankrupt crypto lending platform BlockFi transferred 17 tokens worth $48.37 million to Kraken… The top four token values transferred from BlockFi to Kraken: 2,402,945 LINK ($46.5 million); 90,993 UNI ($0.68 million); 16,570 AVAX ($0.63 million); [and] 468,506 MATIC ($0.47 million),” EmberCN informed.
In September 2023, the firm got the green light to begin customer repayments under a liquidation plan. Following this, in October, BlockFi announced its emergence from bankruptcy. The company resumed withdrawal services for Wallet customers and repaid Interest Account holders and Retail Loan clients. This marked a significant step toward restoring normal operations.
As BlockFi liquidates assets, including the LINK tokens, market watchers are keen on the potential price effects. Meanwhile, some market whales are taking a different path by accumulating LINK, adding layers of complexity to the situation. According to Spot On Chain, the crypto whale demonstrated a bullish stance on LINK by withdrawing 194,400 LINK, approximately $3.67 million, from Binance. This withdrawal marks a significant move in the whale’s trading cycle, which began with the acquisition of 928,016 LINK at an average price of $17.35, totaling around $16.1 million since January 28, 2024
On the technical front, LINK is at a crucial point, testing the lower trendline of a descending channel. This scenario suggests a possible rebound toward the upper channel boundary around $19.70. Market sentiment and future price direction could hinge on a breakout or breakdown from this pattern.
Furthermore, market analysts, like the pseudonymous LinkSpartan, provide insights into institutional strategies and market dynamics. They suggest a cautious stance, hinting at a potential market correction influenced by broader economic factors and liquidity conditions.
“We’ve been in up only mode since June 2023. This will be unpopular but my take is frens and the wider community are starting to get frothy. The market needs fuel if we want to go higher. How does it get that fuel, by taking liquidity at key levels below current prices,” LinkSpartan said.
Source : BeInCrypto by Harsh Notariya / Feb 21, 2024