Despite a tumultuous week in the crypto market, Chainlink (LINK) managed to gain more than 4% over a 24-hour period. This upward trend was supported by whales accumulating over 6.2 million LINK, amounting to approximately $76.88 million. This accumulation of LINK by large holders signals confidence in the crypto asset, even in the face of a broader market downturn and a nearly 10% loss in value over the week.
On-chain metrics for Chainlink also point towards a potential recovery. The supply of LINK on exchanges has decreased by nearly 3% in the past two weeks, reducing selling pressure and creating a favorable environment for a price rebound. The 30-day Market Value to Realized Value (MVRV) ratio currently stands at -9.34%, a zone historically associated with price reversals. A negative MVRV ratio suggests undervaluation, increasing the likelihood of a market sentiment shift and subsequent price increase.
Traders experienced over $47 million in realized losses from June 24 to July 8, indicating a trend of capitulation which often precedes market recovery. Technical analysis also paints a positive picture for LINK, with the $13.84 level aligning with the 23.6% Fibonacci retracement from March’s peak to July’s low. Climbing back to this level could signal a strong recovery for the asset. Additionally, LINK recently entered the Fair Value Gap (FGV) between $11.62 and $12.11, collecting liquidity and setting its sights on the $13.73 to $14.24 price range as the next target.
Despite recent challenges in the crypto market, Chainlink’s prospects appear promising. Whales accumulating LINK, positive on-chain metrics, and technical analysis signals all point towards a potential recovery for the asset. With confidence among large holders and market indicators showing favorable trends, Chainlink may be poised for an upward trajectory in the near future.
