The crypto market is red again after a few days of bullish sentiment. Consequently, Chainlink token LINK fell sharply after reaching $14.40.
This decline means that the sellers might be back in the market and, with more pressure, LINK might dip further in the coming days. LINK hovers around $13.56 with a volume of over $279.5 million.
According to CoinMarketCap, the coin has lost 2% in the past day. However, in the weekly timeframe, LINK is up 8.18%. Moreover, on-chain data insight shows negative exchange net flow, which could help the price in the coming days.
LINK’s Recent Price Swings and Market Sentiment
Since May 29, LINK has been on a bearish trend, dropping from a high of $19 to $11 on July 5. This represents a substantial decrease of approximately 42% in just over a month. However, the token showed signs of recovery starting July 5.
LINK’s price climbed steadily, reaching $14.45 on July 15 – a notable 36% increase from its recent low. Following this brief rally, LINK faced renewed selling pressure and fell back to the $13.5 region where it currently trades.
Despite this drop, data points toward bullish sentiment.
Chainlink’s Recent Exchange Outflows Signal Bullish Sentiment
Crypto analytics firm IntoTheBlock has revealed an interesting trend for Chainlink (LINK). Over the past two weeks, LINK has seen negative exchange netflows. This means more tokens are leaving exchanges than entering them.
Specifically, about $110 million worth of LINK has been withdrawn from exchanges.
Exchange netflows for $LINK have been negative for the past two weeks, with roughly $110 million worth of $LINK being withdrawn from exchanges during this period.
Such activity is typically associated with an accumulation phase, indicating that investors are moving $LINK off… pic.twitter.com/jSvKAkUQ5F
— IntoTheBlock (@intotheblock) July 12, 2024
This significant outflow suggests investors are in an accumulation phase. They’re moving their LINK tokens off exchanges and into long-term storage. This usually means the investors plan to hold the stock for a while and are not looking to sell or trade it in the short term.
Such actions can potentially positively impact LINK’s price. Other investors might see this as a bullish signal and decide to buy in as well, which can help reduce selling pressure on the market.
However, while these signs are positive, they don’t guarantee future price increases.
Institutions Show Growing Interest in Chainlink
On-chain data tracker lookonchain has uncovered a significant trend in Chainlink (LINK) accumulation. Since June 24, 2024, large entities have been quietly acquiring substantial amounts of LINK.
It seems that a mysterious whale/institution is accumulating $LINK!
We noticed 93 fresh wallets withdrawing 12.75M $LINK($167M) from #Binance since June 24!https://t.co/SkqA1r0F1N pic.twitter.com/AJR4fT36VG
— Lookonchain (@lookonchain) July 14, 2024
Specifically, 93 new wallets have withdrawn about 12.75 million LINK from Binance. At current prices, this massive withdrawal is worth approximately $167 million.
This suggests that institutional investors are behind this accumulation. Such large-scale accumulation can potentially impact LINK’s price.
Normally, whale activity often attracts attention from other investors as it may be seen as a vote of confidence in LINK’s prospects.
Chainlink Whales Accumulate Massively, Signaling Potential Price Surge
In addition, Crypto analyst Ali Martinez recently shared an interesting observation about Chainlink (LINK) on X. Large LINK holders (whales) have been buying up tokens in significant quantities.
#Chainlink whales have bought up over 10 million $LINK in the last two weeks, totaling approximately $120 million! pic.twitter.com/9sFtpvn2Ri
— Ali (@ali_charts) July 15, 2024
Specifically, whales holding between 100,000 and 1,000,000 LINK have purchased over 10 million tokens in just two weeks. At current prices, this accumulation is worth approximately $120 million.
Experts believe this accumulation is due to a low rate of LINK. This is evident in LINK’s Market Value to Realized Value (MVRV) ratios. This metric compares an asset’s current price to its average acquisition cost.
According to Santiment, its MVRV for 30-day and 90-day MVRV ratios are negative, sitting at -4.43% and -10.85% respectively. These negative values suggest LINK is trading below its average purchase price.
Negative MVRV ratios often present buying opportunities based on past movement. The recent whale accumulation and negative MVRV ratios paint a potentially bullish picture for LINK.
If this trend continues, it could contribute to upward price pressure in the coming weeks.
Technical Analysis Points to Potential Breakout
Chainlink (LINK) is showing interesting technical signals, even as the broader crypto market remains bearish. LINK has been trading below a bearish trendline for some time. However, it’s now approaching this resistance level.
Surprisingly, LINK is close to breaking above this trendline despite the overall market being in the red. Also, the Moving Average Convergence Divergence (MACD) is still above its signal line, suggesting that LINK maintains bullish momentum.
The Relative Strength Index (RSI) for LINK currently sits at 59. There’s still room for potential growth before LINK enters overbought territory.
These technical indicators paint a cautiously optimistic picture for LINK. If LINK successfully breaks this resistance, it might lead to further upside.
However, traders should remain cautious as a failed breakout attempt could lead to a pullback. For investors who’re interested in buying low and selling high quickly, a new coin in the market now could be the best opportunity.
Meme Games Token: A Unique Opportunity in the Meme Coin Craze
The meme space now has a potential contender called Meme Games ($MGMES). This project is turning heads by merging Olympic-style events with popular meme characters.
In just 72 hours, it’s already secured over $160,000 in its presale phase.
Why Consider Meme Games Token?
Meme Games offers a fun twist on traditional meme coins. In the game, characters like Doge and Pepe compete against each other in Olympic-style events.
Investors can back their favorite memes and potentially earn rewards in $MGMES tokens. The project boasts an impressive 1,833% APY for staking, allowing investors to grow their holdings rapidly.
The presale price of $0.009 per token is attracting early adopters. With a planned DEX listing by September 10, many analysts expect the price to rise significantly.
Meme Games’ smart contract has passed a full audit, providing additional security for investors. If you’re interested in investing, visit the Meme Games website to participate in the presale.
As with any investment, always do your research and invest responsibly.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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