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Whale accumulation may spark Chainlink price recovery

Whale accumulation may spark Chainlink price recovery

GrafaGrafa2024/10/10 23:30
By:Liezl Gambe

Chainlink (CRYPTO:LINK) is experiencing bearish momentum as its Exponential Moving Averages (EMA) recently formed a death cross, signaling continued downward pressure. 

However, there are signs of a possible price recovery as whale accumulation increases. 

Data shows that addresses holding between 100,000 and 1,000,000 LINK tokens grew from 489 on October 1 to 502 by October 8. 

This increase suggests that whales—large holders of LINK tokens—are once again accumulating after a recent correction. 

Whale behavior is closely watched in the market due to their ability to influence price movements. 

Another factor indicating potential recovery is the Market Value to Realized Value (MVRV) ratio, which measures the average profit or loss of LINK tokens held in the last seven days. 

The MVRV ratio currently stands at -4.41%, down from 8.12% on September 27. 

This negative ratio indicates that a significant portion of LINK holders are at a loss, a common indicator that the asset may be oversold. 

Historically, when the MVRV ratio falls below -6%, LINK has shown a tendency to rebound. 

According to market analysis, if the downtrend continues, LINK’s price is expected to test support levels around $9.9 and $9.3. 

However, if whale accumulation continues and the selling pressure eases, LINK’s price could recover, potentially reaching the $11.7 resistance level. 

If this resistance breaks, the price may rise to $13, marking a potential 23% gain. 

At the time of writing, the Chainlink price was $10.53.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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