Share:
  • Chainlink’s large wallet addresses holding between 10,000 to 100,000 and 100,000 to 1,000,000 LINK tokens have started accumulating the altcoin. 
  • A large percentage of Chainlink holders are sitting on unrealized losses. 
  • LINK price has likely hit bottom in the current market cycle. 

Chainlink, the token of the decentralized blockchain oracle network, has likely hit the bottom in the current market cycle. LINK’s average trading returns have consistently declined, with 63.26% of holders sitting on unrealized losses. 

Also read: Axie Infinity rallies 17% after Origins game release on the Apple App Store

Chainlink whales accumulate LINK while 63.5% holders sit on losses

Chainlink’s large wallet addresses holding between 10,000 to 100,000 and 100,000 to 1,000,000 LINK tokens have increased their holdings between May 8 and 17. The number of LINK whales holding between 10,000 to 100,000 Chainlink tokens climbed from 2,908 to 2,926 and the second segment of addresses that hold 100,000 to 1,000,000 added three new holders. 

Chainlink accumulation by large wallet addresses

Chainlink accumulation by large wallet addresses 

The accumulation of LINK tokens by whales in these two segments is bullish as it signals a rise in the number of large wallet addresses holding the altcoin. What’s more, accumulation by whales pulls LINK tokens out of circulation and reduces the selling pressure on the asset. 

Interestingly, whales are scooping up LINK at a time when 63.5% of LINK holders are sitting on unrealized losses. 

Based on data from crypto intelligence tracker IntoTheBlock, at $6.63, 63.26% of LINK token holders are sitting on unrealized losses. This metric signals that whales are likely “buying the dip.”

LINK token holders sitting on unrealised losses

LINK token holders sitting on unrealized losses 

Chainlink enters opportunity zone 

The Market Value to Realized Value ratio (MVRV), a metric that calculates the ratio between the current price and the average price of every coin/token acquired, is used to identify the potential profits or losses if the asset was sold at the current price. This helps determine how over or undervalued the asset is. 

Chainlink’s 30-day MVRV is less than one, it is -5.355% at the current price ($6.60), indicating that most traders selling at the current price level would net a loss. 

Chainlink 30-day MVRV ratio

Chainlink 30-day MVRV ratio 

The MVRV ratio suggests that Chainlink is in the opportunity “buy” zone since LINK is currently undervalued, with MVRV below one. Interestingly, the asset slipped into its opportunity zone with a high level of development activity on the protocol.

Chainlink development activity

Chainlink development activity

A high volume of development activity is correlated with an increase in the project’s utility, adoption and price. However, the LINK price moved in the opposite direction, with the asset in the opportunity “buy” zone, making it likely that the altcoin has hit its cycle bottom and is ready for recovery. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

ApeCoin community is currently voting on three proposals to increase the adoption of the asset among market participants through higher engagement. APE’s recent token unlock and the active proposals could influence APE price in the coming weeks and months. 

More APE News

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

Circle announced plans to discontinue USDC on the TRON blockchain in a phased manner. USDC issuer will no longer mint the stablecoin on TRON, effective Wednesday. Circle stated that its decision is a part of risk management and USDC will remain safe with the change.

More Cryptocurrencies News

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap v2 enables swaps on six chains and users can access it from a single interface. UNI price declined nearly 4% on Wednesday to $7.309. UNI price could revisit 2024’s peak at $7.972 as on-chain metrics support uptrend.

More Cryptocurrencies News

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO Brad Garlingouse commented on the SEC v. Ripple lawsuit and a potential XRP ETF. The payment remittance firm recently acquired Standard Custody to venture into the crypto custodian business. 

More Ripple News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP