Following a tumultuous week for the crypto market, Chainlink (LINK) experienced a surge of over 4%, defying bearish pressure. A key factor driving this uptrend is the increased accumulation of LINK by whales. Data from crypto analyst Ali Martinez reveals that whales have acquired over 6.2 million LINK in the past week, amounting to approximately $76.88 million at the current price. This significant accumulation indicates a sense of confidence among major holders, despite LINK’s recent 10% loss amidst market turmoil.
Experts are optimistic about Chainlink’s potential for a turnaround, citing favorable on-chain metrics. The supply of LINK on exchanges has decreased by nearly 3% in the last two weeks, alleviating selling pressure and paving the way for a price recovery. Additionally, the 30-day Market Value to Realized Value (MVRV) ratio currently stands at -9.34%, a historically crucial level for price reversals. A negative MVRV ratio suggests undervaluation, increasing the likelihood of a market sentiment-driven rebound.
Traders have incurred realized losses exceeding $47 million from June 24 to July 8, indicating a trend of capitulation that often precedes a recovery. On the technical front, analysis points to a promising outlook for LINK. The $13.84 level aligns with the 23.6% Fibonacci retracement from the asset’s recent peak to its July low, presenting a strong recovery opportunity if reached. Additionally, LINK’s dip into the Fair Value Gap (FGV) range of $11.62 to $12.11 suggests liquidity accumulation, setting the stage for a potential target range of $13.73 to $14.24.
Despite recent market challenges exacerbated by external factors, Chainlink’s resilience and the confidence shown by whales and on-chain metrics paint a bullish picture for the cryptocurrency. With promising signals from both fundamental and technical analyses, LINK appears poised for a potential recovery in the midst of ongoing market volatility. Investors and traders are advised to monitor these key indicators closely as they navigate the dynamic landscape of the crypto market.
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