Chainlink (LINK), the leading oracle network’s token, has attracted significant interest from large investors (whales) in recent weeks. This surge in whale activity coincides with a price decline for LINK, presenting a potential buying opportunity.
Whales Accumulate LINK at Discounted Prices
On-chain data from Santiment reveals a steady rise in the number of Chainlink(LINK) whales holding between 10,000 and 1 million tokens since June 20th. This group has grown to 3,474 addresses, representing the highest level since November 2023. Notably, these whales have accumulated over 6 million LINK tokens, worth over $75 million, in the past week alone. Their holdings now account for 21% of the total circulating supply.
Whale activity often signifies belief in an asset’s potential. By accumulating LINK during a price dip, these whales suggest they believe the token is undervalued and poised for a future rally.
Undervaluation Signals Flashing
Supporting the whales’ sentiment, LINK’s market value to realized value (MVRV) ratio currently sits in negative territory across various timeframes. This indicates that the average investor is holding LINK at a loss, potentially presenting a buying opportunity. Historically, such negative MVRV ratios have often been followed by price increases.
Bearish Cloud Lingers
Despite the bullish signals from whale accumulation and MVRV, bearish sentiment persists in the broader market. This negativity is reflected in LINK’s Parabolic Stop and Reverse (SAR) indicator, where the dots currently rest above the price. This suggests a potential for further price decline, with some analysts predicting a drop to $11.11.
Also Read: Chainlink Price Soars 7.73% In A Week: Can Bulls Breach $15.50 Resistance?
Whales Can Steer the Ship
However, the whales’ continued accumulation could influence market sentiment. If smaller investors follow suit, it could trigger a buying spree and a subsequent price recovery for LINK. In this scenario, the token’s price could potentially rise to $13.02.
Overall, the current situation surrounding LINK presents a mixed picture. While whale activity and undervaluation metrics suggest a potential price increase, the broader bearish sentiment cannot be ignored. Investors considering LINK should carefully weigh these factors before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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