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Chainlink Whales Accumulate $30M Tokens, Will LINK Price Recover 21% of Monthly Loss?
In the past week, there has been significant movement for Chain (LINK) reveals that new whale wallets have started accumulating the cryptocurrency. The price of LINK has dropped by more than 21% in the last 30 days, however, whales have shown a steady interest in accumulating. Thus, 54 newly activated wallets have withdrawn a substantial amount of LINK from Binance lately.
Chain whale accumulation
According to Lookonchain, an on-chain analytics platform, these new wallets have snapped up 2.08 million LINK, worth approximately $30.28 million, from Binance. This trend is in line with the behavior of large LINK holders. Existing whale holders have largely refrained from moving their holdings to exchanges for sale over the past month.
This activity is closely tied to current LINK price trends. At press time, the Price LINK was trading at $14.61, after suffering a 21% decline in the past month. As the price of LINK has fallen, the net flow of the cryptocurrency from large holders to exchanges has also seen a significant reduction. Over the past 30 days, this flow has decreased by a whopping 110%.
Additionally, the net flow ratio of large LINK holders to exchanges is currently -0.06%. For context, this metric measures the share of cryptocurrency transferred from whales to exchanges relative to total exchange net flow. Thus, it suggests that a smaller fraction of large investors’ holdings are being sent to exchanges.
A negative value in this metric is generally interpreted as a bullish signal. It implies that these investors are accumulating rather than dumping their assets. Additionally, market analysis based on the Market Value to Realized Value (MVRV) ratio for LINK suggests that current conditions may present a buying opportunity for those who expect a price rebound.
Currently, the medium-term trend for LINK looks bullish, supported by an ascending trend line. However, the coin has recently entered a correction phase amidst broader market consolidation. The formation of a lower high at $19.2 in late May indicates that buyers currently lack the momentum to push to new highs.
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Will LINK price recover?
Despite the correction, the $12.5 price level has emerged as a critical support as the price bounced off this level multiple times. If the LINK price manages to break above the upper trend line, it will signal a continuation of the uptrend. On the other hand, a break below the lower trend line could indicate a prolonged correction and a change in market sentiment.
Chainlink Price Analysis, Source: Trading view
These recent moves in LINK holdings and price trends highlight a potential turning point for the cryptocurrency. The substantial accumulation by new large holders suggests confidence in LINK’s future performance, even as the broader market consolidates. The fact that large holders are not rushing to sell their assets at the current low prices supports the idea of a bullish outlook.
Additionally, Michaël van de Poppe, a famous cryptocurrency analyst, highlighted Chainlink’s resilience amidst downtrends. He noted that LINK’s price always bounces off the lows. Furthermore, he felt Mesh sweater “prime example” for altcoins to bounce back quickly after major corrections.
In a post on X, Poppe said that the price of LINK “corrected in the first half of 2022, after which it increased by more than 120% in the second half of 2022. The same happened in 2023, resulting in a strong price increase in the second half of the year of almost 150%.”
He added: “The same will happen in 2024, where you can see that we are having a case of strong downside momentum in altcoins (Chainlink has corrected by over sixty percent), while the second half seems clear for a potential reversal.” The analyst concluded: “Well, you can see that you will have a bottom in May/June, which, after the last big correction, is the same event again.”