Whale addresses continue to increase their holdings of Chainlink. The MVRV indicator shows that the price may be undervalued and has the potential for a short-term rebound, but the EMA is still on a downward trend.

The movements of on-chain whale addresses are often the key to influencing token prices, because whales can not only stabilize or boost market fluctuations, but their capital flows and trading behaviors can better reflect market trends. By analyzing the activities of whale addresses, we can more accurately predict the market and assess risks, and thus grasp the context of coin price fluctuations.

Chainlink ($LINK) has seen an increase in addresses holding 100,000-1,000,000 $LINK after the recent market consolidation. According to Santiment data, the number of whales of this size has increased from 489 on October 1 to 502 on October 8, indicating that whales' confidence in Chainlink ($LINK) is gradually recovering, which may further form short-term buying pressure.

MVRV shows rebound potential

The MVRV indicator, which measures the valuation of tokens, shows that Chainlink ($LINK) has a MVRV of -4.41% in the past 7 days, which is much lower than 8.12% two weeks ago. The last time the 7-day MVRV fell below -6%, $LINK immediately rebounded; and the current MVRV also shows that the price of $LINK has been underestimated by the market and is in an oversold state, which may reduce the selling pressure of $LINK.

EMA crossover forms a downtrend

That being said, the exponential moving average (EMA) shows that $LINK is still in a downtrend. According to the 4-hour candlestick chart, Chainlink ($LINK) EMA 20 formed a death cross with EMA 50 on October 1 and failed to recover on October 7. If the downtrend continues, $LINK will test the $9.9 and $9.3 support levels. If the test fails, it may continue to fall to $8, which means a potential 23% drop; however, if the downtrend is successfully reversed, $LINK will rise back to the $11.7 or $13 resistance levels.

In summary, the increase in holdings of Chainlink ($LINK) whales has formed the foundation for the recovery of the coin price, and the low valuation of MVRV shows the potential for rebound; however, the short-term EMA shows that $LINK’s current upward momentum is insufficient. Whether it can successfully hold the key support level will be an important factor in the establishment of the $LINK trend.



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