- Chainlink experienced a sharp decline due to a market-wide sell-off triggered by Bitcoin’s drop.
- Whales accumulated over 1.1 million LINK in the last 24 hours, indicating renewed confidence.
- The MVRV ratio at -16.3% suggests a potential rebound, based on historical trends.
- Key support is at $15.50, while resistance levels to watch are $19 and $23.70.
Chainlink (LINK) recently faced turbulence, experiencing a significant decline triggered by a broader market sell-off. The downturn, driven by Bitcoin’s sharp pullback, sparked fear among investors, leading to increased selling pressure across altcoins. However, the market is now showing signs of recovery as Bitcoin bounces off a crucial support level, reigniting optimism among traders.
At the time of writing, Chainlink is trading at $18.01, with a 24-hour trading volume of $843.16 million and a market cap of $11.49 billion, holding a market dominance of 0.36%. Over the last 24 hours, LINK has gained 2.10%, signaling renewed bullish sentiment.
Whale Accumulation Sparks Optimism
On-chain data highlights a surge in whale activity, with large holders accumulating over 1.1 million LINK within the past 24 hours. This significant buying activity suggests that institutional investors and high-net-worth individuals see potential in Chainlink’s current price levels, expecting a strong rebound in the near term.
Historically, whale accumulation has been a bullish signal, often preceding significant price movements. If this trend continues, LINK could experience increased buying pressure, further strengthening its recovery trajectory.
MVRV Ratio Indicates Potential Rebound For Chainlink
Market insights suggest that Chainlink historically rebounds when its MVRV (Market Value to Realized Value) ratio drops below -16%. Crypto analyst Ali Martinez pointed out that past instances of this indicator reaching such levels have led to significant price surges—312%, 64%, 61%, 25%, and 52%. Currently, MVRV sits at -16.3%, hinting at a potential bullish reversal.
Key Levels to Watch
The most critical support level for LINK stands at $15.50, a zone that has historically acted as a strong price floor. On the upside, resistance levels to watch are $19 and $23.70. A breakout above these levels could signal the start of a stronger rally, while a failure to hold support could lead to further downside pressure.
With Bitcoin stabilizing and whales accumulating, Chainlink’s outlook appears promising. If historical trends hold, LINK could be on the verge of another significant rebound.
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