Key Insights
- •Whales purchased over 4 million LINK as the price declined from $17.50 to approximately $14.
- •Exchange reserves decreased by 6 million LINK in a single week, suggesting accumulation off exchanges.
- •The Relative Strength Index (RSI) is nearing oversold territory, and the MACD remains negative, indicating weak momentum despite whale accumulation.
Whale Accumulation During Market Pullback
Chainlink (LINK) holders have significantly increased their holdings, adding over 4 million tokens in the past two weeks, according to on-chain data. This accumulation occurred as wallets holding between 100,000 and 1,000,000 LINK tokens expanded their balances while the market price of LINK fell. Currently, LINK is trading around $14.40, a notable decrease from its price above $17.50 earlier in the same period. This surge in whale activity coincides with a broader market pullback.
Analyst Ali reported, "Whales have accumulated more than 4 million Chainlink $LINK over the past two weeks!" This timing suggests that some significant market participants may be strategically positioning themselves during the recent price correction.
The observed activity indicates that some larger investors may be preparing for a potential recovery by acquiring tokens during the current downturn.
Exchange Balances Decline as Tokens Move Off Platforms
Concurrently, the total amount of LINK held on centralized cryptocurrency exchanges has seen a reduction. Data from CryptoQuant reveals that exchange reserves fell from approximately 146.5 million LINK tokens to 140.3 million tokens between October 31 and November 7. This decrease of over 6 million tokens suggests a diminished supply available for immediate sale on exchanges.
The movement of assets away from exchanges is often associated with longer-term holding strategies. When large wallets accumulate tokens while exchange balances decrease, it can signal a shift in short-term supply dynamics. However, the direct implications of this trend require further observation.
Momentum Indicators Show Continued Weakness
Despite the whale accumulation, LINK has experienced a price decline, losing 16.6% over the last seven days and 2.68% in the past 24 hours. The recent price action on the daily chart continues to display a pattern of lower highs and lower lows, reflecting a prevailing bearish trend.
The Relative Strength Index (RSI) has fallen to approximately 32.90, nearing the oversold threshold of 30. This suggests that the asset is approaching a price level where buying interest may increase. The Moving Average Convergence Divergence (MACD) indicator remains in negative territory, with no immediate signs of a bullish crossover, indicating that downside momentum is still in effect.
Market Watching Key Levels for Direction
The accumulation by whales and the decrease in exchange reserves have attracted significant attention from the market. However, the price of LINK remains under pressure. While some observers view this accumulation as a preparatory move for a potential market recovery, others remain cautious due to the absence of confirmed bullish signals from technical indicators.
Analyst Ali noted the significant accumulation by whales, stating, "Whales have accumulated more than 4 million Chainlink $LINK." Nevertheless, the short-term price direction will likely depend on how the current price levels are received by the market. Investors and traders are closely monitoring for signs that indicate either a stabilization of the price or a continuation of the downward trend.