Chainlink (LINK) Whale Holdings Reach 8-Month High as Price Rebounds

LINK, the native token of the leading oracle network Chainlink, has received considerable attention from large investors in the past few weeks. LINK whale accumulation has spiked amid the decline in the altcoin’s value.

Trading at $12.49 at press time, LINK’s price has dropped by 18% in the last month, creating an opportunity for this cohort of investors to “buy the dip.”

Chainlink Whales “Ape In”

On-chain data from Santiment show that LINK whales have been busy in the past few weeks. The count of LINK whales holding between 10,000 and 1,000,000 tokens has risen steadily since June 20. At 3,474 addresses at press time, their number has since grown by 3.3%, representing their highest number since November 2023.

Chainlink Supply Distribution. Source: Santiment

This group of LINK holders has accumulated over 6 million LINK tokens worth more than $75 million at current market prices in the last week alone.  As of this writing, these whales hold 21% of the token’s total circulating supply. 

When an asset sees an uptick in whale accumulation amid a price decline, it means that its large investors believe it is undervalued. Their buying activity suggests confidence in the asset’s potential rally. 

Readings from LINK’s market value to realized value (MVRV) ratio confirm that the altcoin is currently undervalued, thus presenting a buying opportunity. 

As of this writing, LINK’s MVRV ratios show negative values when assessed over various moving averages. For example, its MVRV ratios for the 30-day and 90-day moving averages are -6.71% and -12.93%, respectively.

Read More: How To Buy Chainlink (LINK) and Everything You Need To Know

Chainlink MVRV Ratio. Source: Santiment

An asset’s MVRV ratio measures the ratio between its current price and the average price at which all its coins or tokens were acquired. 

When its value is below zero, it suggests that the asset’s market value is less than the average purchase price of all its tokens in circulation. When this occurs, the asset is said to be undervalued. 

Historically, negative MVRV ratios offer a buying opportunity because the asset is deemed to trade below its cost basis. Therefore, traders can buy at a lower price and hope to sell higher.

LINK Price Prediction: Poor Sentiments Continue to Prevail

While LINK flashes a buy signal, it is noteworthy that the bearish bias toward the altcoin remains significant. Hence, it is at risk of further devaluation.

At press time, the dots that make up its Parabolic Stop and Reverse indicator (SAR) rest above its price. This indicator measures an asset’s potential trends and identifies reversal points. 

When its dots lie above an asset’s price, the market is said to be in a decline. It indicates that the asset’s price has fallen, and the decline may continue.

If LINK’s decline continues, its value will fall to $11.11.

Chainlink Analysis. Source: TradingView

However, if the whales continue accumulating the altcoin, their behavior can influence the sentiment of other investors. Seeing whales accumulate can encourage smaller investors to hold or buy more, contributing to a potential price recovery. If this happens, LINK’s price may climb to $13.02.

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