As a researcher with experience in cryptocurrency analysis and market trends, I find the recent accumulation activity by Chainlink (LINK) whales to be an intriguing development. The significant drop in LINK’s price over the last month has not deterred these large investors from buying, as evidenced by the influx of new whale wallets on Binance.
Over the past week, there’s been a noticeable surge in new whale-owned wallets amassing Chainlink (LINK). Despite a nearly 21% decline in LINK price over the previous month, these large investors have continued to show interest in purchasing the cryptocurrency. Consequently, approximately 54 newly activated wallets have withdrawn considerable amounts of LINK from Binance recently.
Chainlink Whales Accumulation
Based on data from Lookonchain, a platform that analyzes blockchain transactions, newly identified wallets have acquired around 2.08 million LINK tokens, valued at approximately $30.28 million, directly from Binance. This pattern aligns with the recent actions of significant LINK investors. Notably, these major investors have mostly avoided transferring their holdings to exchanges for selling over the past month.
The price behavior of LINK is strongly influencing this particular activity. At present, the LINK price is quoted at $14.61, representing a 21% decline in value over the last month. Consequently, the volume of LINK transferred from large holders to cryptocurrency exchanges has noticeably decreased. Over the past thirty days, this transfer amount has plummeted by an astonishing 110%.
As a crypto investor, I’ve noticed that the net flow ratio of LINK large holders to exchanges is currently sitting at -0.06%. To put it simply, this metric tells us that more LINK is flowing out of exchanges to large holders than the other way around. This indicates that a smaller percentage of these investors’ holdings are being moved to exchanges for selling or trading purposes.
A negative value in the MVRV ratio for LINK indicates a bullish sign. This means investors are likely amassing assets instead of selling them off. Based on market analysis, the current situation may represent a good purchasing chance for investors expecting a price recovery.
At present, LINK‘s medium-term outlook is positive with an uptrend indicated by an ascending trendline. Yet, the coin has entered a corrective phase in line with the wider market’s consolidation. The creation of a lower peak at $19.2 towards the end of May suggests that buyers are currently lacking the strength to drive prices higher.
Will LINK Price Recover?
In simpler terms, the price of $12.5 has become an important line of defense for LINK, as it has bounced back from this point numerous times after corrections. If LINK can surpass the upper trendline, this would suggest that the upward trend will persist. Conversely, a fall below the lower trendline might be a sign of a prolonged correction and a change in investor sentiment.
As a researcher studying the trends in LINK, I’ve noticed some intriguing developments. The influx of new significant holders amassing LINK signifies their belief in its future success, despite the current market consolidation. Interestingly, these large investors are not panicking to sell off their assets at the present lower prices, which adds weight to the bullish perspective.
Michaël van de Poppe, a well-known cryptocurrency analyst, highlighted Chainlink’s ability to recover during bearish market trends. He pointed out that the LINK price consistently rebounds from its lows. Additionally, he considered Chainlink as the leading representative of altcoins that rapidly bounce back following significant corrections.
In a recent post on X, Poppe described how the LINK price experienced a notable correction during the first half of 2022. Following this correction, there was a significant price surge, with an increase exceeding 120% in the second half of that year. This trend has continued into 2023, resulting in another substantial price rise of approximately 150% in the latter part of the year.
The analyst remarked, “The trend seen in 2024 is similar to what we’ve experienced before. We observe a significant decline in altcoins, including Chainlink which has dropped by over sixty percent. However, the second half of the year seems promising for a potential turnaround. It appears that a bottom may form around May or June, following another major correction.”
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2024-07-02 14:44