Chainlink’s native token, LINK, has been making waves in the cryptocurrency market as large investors have been accumulating the altcoin amid a recent price decline. With LINK trading at $12.49 at press time, down 18% in the last month, these investors see an opportunity to “buy the dip.”
According to on-chain data from Santiment, the number of LINK whales holding between 10,000 and 1,000,000 tokens has been steadily increasing since June 20. At 3,474 addresses currently, these whales now hold over 6 million LINK tokens, worth more than $75 million at current market prices. This represents 21% of the token’s total circulating supply.
The uptick in whale accumulation during a price decline suggests that these large investors believe LINK is undervalued and have confidence in its potential for a rally. This sentiment is further supported by LINK’s market value to realized value (MVRV) ratios, which currently show negative values for various moving averages, indicating that the altcoin is undervalued.
While the poor sentiments toward LINK continue to prevail, with the altcoin at risk of further devaluation, the behavior of these whales could influence the sentiment of other investors. If the whales continue to accumulate LINK, it could encourage smaller investors to hold or buy more, potentially leading to a price recovery. In this scenario, LINK’s price may climb to $13.02.
It is important to note that this analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, so conducting your own research and consulting with a professional before making any financial decisions is always recommended.
