- Whale accumulation of 3.58M LINK signals confidence in long-term growth.
- Dormant token movement suggests strategic buying during LINK price dips.
- Technical indicators show mild bearish momentum, with potential for price stabilization.
Chainlink ($LINK) has experienced a noticeable retracement, mirroring the broader trend in the cryptocurrency market. However, amidst this downturn, key whale investors holding between 1 million and 10 million LINK tokens have been actively accumulating.
As per Santiment data, over the past three days, the whales have added 3.58 million LINK tokens to their holdings, worth approximately $76.9 million. This significant accumulation suggests a strong confidence in Chainlink’s long-term prospects, even as the price dips.
Whale Behavior and Dormant Tokens: A Sign of Confidence
The whale activity isn’t the only noteworthy development for Chainlink. Further data revealed that another key whale tier holders with between 100,000 and 1 million LINK tokens, have also been buying during the recent price dips.
Over the past three days, these whales have accumulated an additional 3.58 million tokens. This trend highlights a broader bullish sentiment among large investors, who are seizing the opportunity to buy the dip.
Moreover, the ‘Age Consumed’ metric has shown a significant spike during two key price dips. This metric tracks the movement of dormant tokens that have not been in circulation for some time.
The sudden activation of these long-held coins aligns with strategic buying behavior, potentially orchestrated by influential investors looking to capitalize on the dip. These movements could indicate that major holders are positioning themselves for future price increases, suggesting a more bullish outlook for LINK.
Chainlink Price Trends and Whale Activity Correlation
Despite the overall market decline, the behavior of LINK whales reveals an interesting trend, as they bought over 2.70 million Chainlink ($LINK) in the past 48 hours. Moreover, as of December 27, 2024, LINK’s price stands at $23.31, while the holdings of whales in the 100,000 to 1 million LINK range have increased to 145.76 million tokens.
This steady increase in whale holdings over the past month suggests that these investors have been accumulating during price dips, signaling a long-term strategy rather than short-term speculation.
Furthermore, the correlation between whale accumulation and price movements highlights the significant influence these large investors have on Chainlink’s market dynamics. Their strategic approach to buying the dip may contribute to price stabilization or even future growth, depending on market conditions.
Whale Withdrawals and Potential Losses
According to data from Lookonchain, it indicates that a whale deposited about 250,000 LINK tokens, worth $5.37 million, to exchanges like Binance and OKX. This occurred shortly after a series of withdrawals from Binance, where the whale took out 595,000 LINK tokens at an average price of $29.1 between December 14 and 18. Trading at $21.29, noted at press time, this whale is facing a paper loss of around $4.5 million.
Technical Indicators Point to Bearish Momentum
Further, over the last 24 hours, Chainlink’s technical indicators reflected bearish momentum, marking a 7.29% drop.
Moreover, the Relative Strength Index (RSI) is around 44.13, signaling mild bearish conditions but not yet in oversold territory. The Moving Average Convergence Divergence (MACD) shows a downward trend, with the MACD line below the signal line and negative histogram bars.