– Chainlink whales holding between 100,000 to 10 million LINK tokens, accumulating the altcoin during the recent dip in its price.
– Crypto market participants have a bearish sentiment on LINK, based on data from Santiment.
– Whales are likely to take a bullish stance on LINK and push the altcoin’s price higher despite negative weighted sentiment, as seen in December 2022.
Chainlink, a decentralized oracle network, is likely to witness a rebound in its price.While the weighted sentiment, an indicator that takes into account social volume across platforms, signals a bearish sentiment, LINK whales are accumulating the token.
A similar setup was observed in December 2022 where
LINK price started a rally.
Also read:
Ethereum Shapella upgrade set to go live in 48 hours, what this means for ETH holders
Chainlink whales accumulate millions of LINK tokens
Large wallet investors in Chainlink started accumulating large volumes of
https://www.fxstreet.com/cryptocurrencies/news/weekly-recap-zk-hype-increases-uni-and-cake-bleed-after-copycat-fork-xrp-whales-turn-bullish-202304071217 tokens despite the recent decline in the weighted sentiment.Accumulation by whales is considered a bullish sign.
Based on data from crypto intelligence tracker Santiment, whales holding between 100,000 to 1,000,000 LINK and 1 million to 10 million Chainlink tokens engaged in accumulation since the first week of March.
LINK accumulation by whales
Chainlink price nosedived in the first two weeks of March, and whales continued “buying the dip” increasing their LINK holdings consistently.
Investors turn bearish on LINK, is this the time for a contrarian stance?
Weighted sentiment is a metric that calculates the average sentiment among LINK holders across various social media platforms.The metric is used to gauge the sentiment of the community towards the asset.
The metric nosedived from 3.32 on March 3 to -0.62 on April 9.
The drop is indicative of increasing bearish sentiment among LINK holders and the community on social media platforms.
LINK weighted sentiment v.price
This decline in the weighted sentiment is similar to December 2022 when sentiment dropped from 1.31 to -0.78 within a month.Post the decline in sentiment in December, LINK price witnessed a massive rally.
Typically, when a large percentage of the community is bearish, whales are known to take a contrarian or bullish stance.This is one of the times when the sentiment is largely negative and whales are accumulating the
altcoin, indicating that a recovery rally is likely in LINK.
What to expect from LINK price?
As seen in the LINK/USDT one-day price chart below, the token recently broke out of its multi-month downtrend.
Weighted sentiment among holders went from positive to negative in the last two weeks of December 2022 preceding the 56.7% rally in LINK price to the 23.6%
Fibonacci Retracement level of $8.39.
LINK is in a short-term uptrend and weighted sentiment has turned bearish yet again.In a similar fashion as December, this can be considered as a precursor of a price rally in LINK.
The Relative Strength Index, a momentum indicator reveals a slight bearish divergence in LINK.It is likely that the divergence has played out with LINK price dropping to $7.23.
LINK/USDT 1D price chart
LINK price is likely to find support on the trendline, above $6.5 in the event of a decline.If whales are successful in pushing Chainlink higher, there are two resistances at $8.01 and $9.31, levels that acted as resistance in LINK’s price chart in mid-2022.
The bullish target is a modest 38.2% Fibonacci Retracement at $10.29.
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
Recommended Content
Editors’ Picks
Ethereum Shapella upgrade inches closer, crypto traders watch Ethereum closely
Ethereum blockchain’s Shanghai upgrade is slated to occur on April 12.This marks the second-most significant milestone in Ethereum’s developmental journey post the Merge, the transition from Proof-of-Work.Liquid staking derivatives have gained traction in the weeks leading up to the Merge.
More Ethereum news
Fan tokens rise with 262% rally in OG coin: Lawyers argue Hong Kong’s trading circles are driving the “pump”
Fan tokens or digital assets that offer exclusive benefits to fans of football clubs have yielded double-digit gains to holders over the past week.OG Fan token (OG) offered 262% gains to holders over the past week alongside Manchester City Fan Token (CITY), FC Barcelona Fan Token (BAR) and Juventus Fan Token (JUV).
More Cryptocurrencies News
Assessing the possibility of Bitcoin price hitting $30,000 this week
Bitcoin price has been highly consolidative for more than three weeks as it trades between two key levels.Despite the stellar performance of Q1 2023, BTC remains clueless about where it wants to head next.
More Bitcoin News
Cosmo Price Prediction: Can ATOM revert to the mean?
Cosmos price shows signs of tight consolidation inside a range that was formed in late March 2023.As ATOM bounces off the range low, investors can expect it to tag the immediate hurdles.
More Cryptocurrencies News
Bitcoin: BTC leaves investors guessing its next move
Bitcoin price action has remained boring since March 20 and shows no directional bias whatsoever.While the larger bullish outlook is intact, a minor retracement might ensue in the coming weeks.
Read full analysis.
