The LINK price has corrected by over 16% in days, shaking retail investors' confidence. However, Chainlink whales are now buying in strategic volumes amidst the apparent panic. Could this accumulation phase signal the cycle's bottom before a fresh rebound?
Wallet analysis shows that addresses holding more than 100,000 Chainlink have significantly increased their positions during the recent correction. This contrarian behavior from whales suggests strong conviction in the project’s fundamental value, despite the selling pressure that has hit the entire altcoin market.
On-chain metrics indicate that accumulation is particularly concentrated in wallets not connected to exchanges. This typically reflects a medium to long-term holding strategy rather than quick speculation. This dynamic resembles the accumulation phases observed before previous major LINK rallies.
However, transaction volume remains relatively low compared to historical peaks. This limited liquidity amplifies volatility and partly explains why whale purchases aren’t immediately translating into price recovery.
Despite the recent correction, institutional investors and whales continue to accumulate LINK. This market cooling phase often provides ideal entry points to position yourself before the next bullish cycle. On Bitget, you can easily buy Chainlink (LINK) and receive an immediate $10 bonus for your first crypto purchase.
From a strictly technical perspective, LINK is now evolving in a critical zone. The psychological support of $13 was broken during the last session, pushing the token to levels not seen for several weeks. Momentum indicators like the RSI show significant oversold conditions, but without a clear reversal signal.
The price structure suggests that a test of the support zone between $11.80 and $12.20 remains likely in the short term. It’s precisely within this range that several large institutional buyers have positioned themselves, according to available data. A technical rebound from this zone could validate the thesis of ongoing accumulation.
The macroeconomic context also works against LINK. Investor caution toward altcoins, coupled with Bitcoin’s growing dominance in the market, deprives Chainlink of the momentum needed to reverse the current bearish trend.
Beyond price movements, Chainlink’s fundamentals haven’t weakened. The protocol continues to integrate new institutional partnerships and expand its oracle network across different blockchains. The number of smart contracts using Chainlink data feeds is steadily increasing, confirming the project’s real utility.
This fundamental strength likely explains why whales maintain their confidence. In the crypto ecosystem, large holders typically have more comprehensive information and longer investment horizons than the average retail trader. Their current behavior suggests they anticipate a recovery once the selling pressure exhausts itself.
Nevertheless, it would be imprudent to consider whale accumulation as a guarantee of an imminent rebound. Crypto markets can remain irrational much longer than the positions of even the best-capitalized investors can hold.
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