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Chainlink (LINK) Eyes Rebound as Whales Reduce Selling Activity

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The last month has been marked by a decline in Chainlink’s (LINK) large holder netflow to exchanges. This means that the altcoin major holders have only sent a small portion of their holdings to exchanges for sale.

This is attributable to the LINK’s current price performance. As of this writing, the altcoin trades at $14.31. Its value has dropped by 21% in the last month

As LINK’s price drops, the netflow from its whales to cryptocurrency exchanges has also decreased. In the past 30 days, this has fallen by 110%. 

As of this writing, LINK’s large holder netflow to exchanges to exchange netflow ratio is -0.06%.

Chainlink Large Holders Netflow to Exchange Netflow Ratio. Source: IntoTheBlock

This metric measures the proportion of cryptocurrency transferred from whales to exchanges relative to the total exchange netflow. When its value is negative, it means that only a smaller portion of large investor holdings are being sent to exchanges. 

This may be read as a bullish signal, suggesting that large investors are accumulating and not selling their assets. 

According to the token’s market value to realized value (MVRV) ratio, now might be a good time to buy for cohorts of LINK holders anticipating a rebound.

As of this writing, the token’s MVRV Ratios assessed over 30-day and 365-day moving averages are -3.7% and -1.0%, respectively. 

Read More: What Is Chainlink (LINK)?

Chainlink MVRV Ratio. Source: Santiment

This metric tracks the ratio between an asset’s current market price and the average price of every coin or token acquired for that asset. 

When its value is negative like this, the market price of the asset in question is less than the average purchase price of all its tokens in circulation. 

This is viewed as a buy signal because it means that the asset trades at a discount relative to its historical cost basis.

If LINK whales continue to refrain from selling, and other investors take advantage of the current dip in the altcoin’s value, its price may rally to $15.17.

Chainlink Analysis. Source: TradingView

However, if the price decline continues, LINK’s price may fall under $13

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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