NAIROBI (CoinChapter.com)—Chainlink (LINK) has plummeted by 40% in recent weeks, sparking concern among investors. Despite the decline, whale activity suggests confidence in the token’s long-term potential. Over the last 24 hours, large holders have accumulated more than $20 million worth of LINK, hinting at a possible price recovery.
Whale Accumulation Hints at Possible Recovery
On-chain analyst Ali reported that Chainlink’s Market Value to Realized Value (MVRV) ratio dropped to -16.3%, a level that previously marked exhaustion points for selling. Historical data suggests that when MVRV dips below -16%, LINK has rebounded with gains ranging from 25% to 312%. With whales aggressively buying the dip, traders are watching closely for a reversal.
Chainlink (LINK) MVRV ratio signals potential trend shift. Source: Ali Martinez/XOver the past 24 hours, more than 1.10 million LINK tokens changed hands, indicating a strategic move by major investors. Ali noted that similar whale activity in the past has preceded strong upward moves. However, analysts warn that Chainlink price action remains at a critical juncture, requiring a key breakout to confirm a bullish shift.
Chainlink Price Stuck in a Range—Breakout or Breakdown Next?
Market observers like Suzzy highlight that LINK has been trading within a tight range of $17.50 to $19.50. A decisive move above $19.50 could propel LINK toward $21 or beyond, but failure to break resistance might keep it trapped in consolidation.
Chainlink (LINK) tests key support at $17.50 amid accumulation hopes. Credit: Suzzy/XMeanwhile, technical analyst Nebraskangooner believes LINK is at risk of dropping further if it loses its key support level. He suggests that if the token falls below $15.50, it could revisit the $12.00 support zone. Previously, LINK’s price rebounded after testing similar levels, but traders remain cautious as momentum weakens.
LINK/USD 1-day price chart. Source: TradingViewThe Relative Strength Index (RSI) on the daily timeframe is hovering at 38.83, indicating that Chainlink is approaching oversold conditions. In previous cycles, LINK has rebounded when the RSI dipped below 40, adding to the case for a potential reversal.
The descending parallel channel in the chart highlights two key levels traders should watch. A breakout above $19 would confirm a bullish reversal, opening the door for a push toward $23.70. However, if LINK fails to hold above $17.50, a deeper correction toward $15.50 or even $12.00 could be on the table.
Source: Santinment/XSantiment ranked it as the top Real World Asset (RWA) project in terms of growth, outpacing competitors like Synthetix and MakerDAO. This suggests long-term fundamentals remain intact, even if short-term volatility persists.
For now, traders are watching two key levels—$17.50 and $19.50. A breakdown could lead to more losses, but if LINK holds or breaks out, a rebound may follow. With whales buying heavily, it’s clear that some big players are betting on a recovery. Whether they’re right remains to be seen.
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