Chainlink (LINK) Eyes $20 Rally as Polygon Adopts New Price Feeds

Insights:

• Chainlink (LINK) price tumbled toward $14.25 on Sunday, down 16% from its yearly peak of $17 recorded on Dec 9. 
• The Polygon team announced the adoption of Chainlink price feeds for its ZkEVM scaling network on December 15.
• On-chain data trends show that Crypto whales appear to have started buying the LINK token at discounted prices since the Polygon team’s announcement. 

Chainlink (LINK) price slipped into a consolidation phase shortly after retesting the $17 on Dec 9. However, after a week-long downtrend, the recent integration of Chainlink proprietary price feeds into the Polygon ZkEVM network appeears to have buoyed whale investors’ confidence in the LINK token. 

Will the growing demand for Chainlink among crypto whales be sufficient to power LINK up the price charts this week? 

LINK Price Pumped 4% After Polygon Network Announced Chainlink Price Feeds Adoption 

Chainlink, is the self-touted, largest decentralized oracle blockchain network. The project is dedicated to rendering real-time off-chain price feeds and integrating them into blockchain protocols. 

Since the asset tokenization wave took off earlier this year, Chainlink price feeds have become highly sought after among crypto projects looking to interact with TradFi infrastructure. 

On Friday, December 15, Polygon’s ZkEVM network became the latest blockchain network to adopt Chainlink price feeds. 

In a post on X, (fomerly Twitter) Polygon co-founder Sandeep Nailwal announced that Chainlink’s data feeds are now live on the Polygon’s Proof-of-Stake (PoS) chain. 

The combination of the data feeds from the blockchain oracle network with the Ethereum scaling solution marks a new era for DeFi. Large DeFi protocols like AAVE use Chainlink, and the data feeds network secures 85 to 90% of the available liquidity, said Sandeep Nailwal.

In initial reaction to the post, Chainlink (LINK) token price spiked 4%, grazing the $14.60 mark before the bears force another correction. 

However a closer look at the on-chain data trends this weekend, shows that the announcement has buoyed whale investors confidence in the LINK token’s rebound prospects. 

Chainlink Whales Started Buying the Dip Following Polygon Network Collaboration 

According to IntoTheBlock, LINK Large Holders Inflow has been on a consistent rise since Nailwal’s announcement on Friday. As seen below, the whales added a total of 23.44 million to their holdings over the weekend, between Dec 15 and Dec 17.

The Large Holder Netflow measures the daily variance between the outflows and inflows from whale wallets holding atleast 0.1% of the total circulation supply.

Valued at the 5-day average of $14.20 the whales have now acquired LINK tokens worth $332 million since the Polygon integrated Chainlink price feeds. 

A prolonged buying trend among corporate entities and high networth investors often puts upward pressure on a cryptocurrency’s price. 

Firstly, when crypto whales buy large quantities of coins within a short period, as observed above, it causes a large increase in market demand. It also provides much-need liquidity, which enables bearish sellers, to execute trades at favorable prices 

More importantly, it encourages other stakeholders in the ecosystem to take on a positive momentum. 

These critical factors are likely to swing the LINK price momentum in favour of the bulls and trigger a swift rebound toward $20, in the days ahead.