Chainlink (LINK), a cryptocurrency-powered decentralized oracle network, has witnessed an interesting trend emerge amidst a broader market downturn. While the LINK price has suffered a 21% decline in the past month, on-chain data reveals a significant accumulation of new whale wallets. This activity suggests potential confidence in LINK’s future, sparking discussions about a price recovery.
According to Lookonchain, a platform analyzing blockchain data, a wave of fresh whale wallets have scooped up over 2 million LINK tokens, valued at roughly $30 million, from Binance in the last 30 days. This buying spree coincides with existing large holders refraining from selling their LINK holdings on exchanges.
This behavior aligns with the current price trend. As LINK’s price dipped, the net flow of the cryptocurrency from large holders to exchanges dropped by a significant 110%. Currently, the net flow ratio for LINK large holders to exchanges sits at -0.06%, indicating a smaller portion of their holdings is being sent to exchanges, suggesting accumulation rather than selling.
Further bolstering the bullish case, market analysis based on the Market Value to Realized Value (MVRV) ratio for LINK hints at a potential buying opportunity for those expecting a price surge. Technically, a medium-term uptrend appears possible for LINK, supported by a rising trendline. However, a recent correction phase due to broader market consolidation has temporarily halted momentum.
While the price has bounced off the crucial $12.5 support level multiple times, a break above the overhead trendline would signal a continuation of the uptrend. Conversely, a breach below the lower trendline could indicate a prolonged correction and a shift in market sentiment.
These recent movements in Chainlink (LINK) holdings and price trends highlight a potential turning point for the cryptocurrency. The substantial accumulation of new whales suggests confidence in LINK’s long-term prospects. Popular crypto analyst Michaël van de Poppe emphasizes LINK’s historical resilience, highlighting its tendency to rebound after significant corrections.
Van de Poppe points to LINK’s price history, noting strong surges in the second half of 2022 and 2023 following corrections in the first half. He observes a similar pattern emerging in 2024, suggesting a potential reversal in the latter half of the year.
With whale accumulation and historical performance as indicators, LINK‘s price recovery seems like a possibility. However, broader market conditions and the coin’s ability to break above resistance levels will ultimately determine the direction of its price movement.
