Chainlink's native token, LINK, has attracted the attention of major investors recently. Despite the recent 18% price drop, large holders are seizing the opportunity to “buy the dip.”
According to Santiment data, the number of LINK whales – holding between 10,000 and 1,000,000 tokens – has been steadily increasing since June 20. Currently, there are 3,474 such addresses, marking the highest number since June 20. from November 2023.
These whales have accumulated over 6 million LINK tokens in the past week alone, worth over 75 million USD at current prices. This group currently holds 21% of LINK's total circulating supply.
When whales accumulate during falling prices, it often signals they believe the asset is undervalued and shows confidence in the possibility of price increases.
LINK's market value to actual value (MVRV) ratio confirms that it is currently undervalued, with negative readings on its 30-day and 90-day moving averages (-6.71% and 90% respectively). -12.93%). Historically, such negative MVRV ratios suggest buying opportunities when assets trade below the average purchase price.
However, despite these positive signals, sentiment around LINK remains bearish, suggesting the potential for a deeper decline. The Parabolic SAR shows a bearish bias, with a drop to $11.11 possible if the current pattern persists.
However, continued whale accumulation could have a positive impact on investor sentiment, potentially pushing LINK price back to $13.02.
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