New Chainlink Whales Bought $30 Million Worth of Tokens, Can LINK Price Recover from 21% Monthly Loss?
A significant move for chainlink (LINK) last week saw new whale wallets begin to accumulate the cryptocurrency. The LINK price has fallen by over 21% in the last 30 days, but whales have shown continued interest in accumulating. As such, 54 newly activated wallets have recently withdrawn significant amounts of LINK from Binance.
Chainlink Whales Accumulation
According to on-chain analytics platform Lookonchain, these new wallets received 2.08 million LINK from binance, equivalent to approximately $30.28 million. This trend is in line with the behavior of large LINK holders. Existing whale holders have largely avoided selling their holdings to exchanges over the past month.
This activity is closely tied to LINK’s current price trends. At press time, LINK was trading at $14.61 after a 21% drop in the past month. As LINK’s price has fallen, the net flow of the cryptocurrency from large holders to exchanges has also seen a significant drop. Over the past 30 days, this flow has decreased by a whopping 110%.
Additionally, the net flow rate of large LINK holders to exchanges currently stands at -0.06%. For context, this metric evaluates the amount of crypto transferred to exchanges by whales compared to the total exchange net flow. Therefore, it suggests that a smaller portion of large investors’ assets are being sent to exchanges.
A negative value in this metric is often interpreted as a bullish signal, implying that investors are accumulating their assets rather than dumping them. Furthermore, market analysis based on the Market Value to Realized Value (MVRV) ratio for LINK suggests that current conditions could present a buying opportunity for those waiting for a price recovery.
Currently, LINK’s medium-term trend is bullish and supported by an ascending trendline. However, the cryptocurrency has recently entered a correction phase amid broader market consolidation. A lower high formed at $19.2 in late May suggests that buyers currently lack the momentum to push for new highs.
Also Read: Swiss State Bank Launches Trading in XRP, ADA, SOL, AVAX, and DOT
Will LINK Price Improve?
Despite the correction, the $12.5 price level has emerged as a critical support level, as the price has bounced off this level several times. If the LINK price manages to break above the general trend line, it will signal a continuation of the uptrend. On the other hand, a break below the lower trend line could signal a prolonged correction and a change in market sentiment.
Chainlink Price Analysis, Source: TradingView
These recent movements in LINK holdings and price trends highlight a potential turning point for the cryptocurrency. The significant accumulation of new major shareholders suggests confidence in LINK’s future performance, even as the broader market consolidates. The bullish outlook is supported by the fact that major investors are not rushing to sell their holdings at current low prices.
Michaël van de Poppe, a popular crypto analyst, also noted Chainlink’s resilience to downtrends. He noted that the LINK price always bounces back from lows. He also considered Chainlink a “prime example” of altcoins that quickly recover after major corrections.
“In the second half of the year, close to 150% on a price-related post.”
He added: “The same thing is happening in 2024, where you can see that we have a strong downside momentum in altcoins (Chainlink has corrected more than 60 percent), while the second half looks open for a potential reversal.” The analyst concluded: “Good, you can see that you will have a bottom in May/June, which is the same thing again after the last big correction.”
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Kritika has over 2 years of experience in the financial news industry. Currently working as a crypto journalist at Coingape, she has consistently demonstrated a mastery of blockchain technology and cryptocurrencies. Kritika combines in-depth analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of emerging trends in finance, technology, and crypto.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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