As an experienced crypto analyst, I believe that Chainlink (LINK) is poised for a potential recovery based on several promising indicators. The recent accumulation of LINK by whales worth over $76 million is a clear sign of confidence among large holders, despite the asset’s losses during the past week.


After a challenging week marked by Mt. Gox’s update and the German government’s Bitcoin sale, I observed a momentary relief in the crypto market. Specifically, Chainlink (LINK) registered a noteworthy increase of over 4% within a 24-hour period, despite facing heightened bearish pressures.

Backing this trend are certain whales who have ramped up their LINK stash.

LINK Whales Add $77M

As a researcher studying cryptocurrency markets, I’ve come across an intriguing observation by prominent crypto analyst Ali Martinez. He reports that whales have purchased over 6.2 million LINK within the past week, equating to around $76.88 million based on current market prices.

Despite the significant loss of almost 10% for this cryptocurrency asset over the past week, during which the overall market experienced a downturn, the growing hoard indicates a high level of self-assurance among major investors.

Multiple elements point towards a optimistic perspective for Chainlink. According to another specialist, the on-chain data suggests a possible 10% price increase.

One notable finding is that over the past two weeks, the amount of LINK available for trading on exchanges has decreased by approximately 3%. This decrease often signifies lessened selling pressure, potentially paving the way for a price rebound.

Currently, the 30-day Market Value to Realized Value (MVR) ratio stands at a level of -9.34%. Traditionally, this indicator holds significant importance as it has been linked to price reversals. Negative MVRV ratios generally suggest that an asset may be underpriced, thereby increasing the probability of a market upturn as investor attitudes change.

As a crypto investor, I closely monitor the market metrics, and one intriguing statistic that recently caught my attention is the realized losses incurred by traders. Between June 24 and July 8, these losses tallied up to an astounding $47 million. This trend is particularly noteworthy as it may signify capitulation – a state where investors give up on their positions, often leading to a market recovery.

Bullish Technical Signals For LINK

The technical analysis indicates that LINK may experience a resurgence based on the $13.84 mark. This amount corresponds to the 23.6% Fibonacci retracement line, which is derived from the asset’s peak in March to its low in July. Should LINK regain this level, it could potentially trigger a robust recovery.

As a crypto investor, I’ve noticed that LINK has recently dipped into the Fair Value Gap (FGV) ranging from $11.62 to $12.11. During this period, the asset was able to accumulate significant liquidity. Based on this trend, my next target price range for LINK is between $13.73 and $14.24.

Read More

2024-07-09 10:29