Chainlink’s [LINK] attempt to move above $9 collapsed days ago after LINK was rejected at $8.9. Since then, the altcoin has dropped to a low of $8.18 before making slight gains.
At press time, Chainlink was trading around $18.28, down 1.27% on the daily charts. This price weakness seems to have created a perfect buying window, especially for high-net-worth investors.
Chainlink whale buys $6.8M
According to data, a whale purchased 800K LINK from Coinbase, worth $6.8 million. After the purchase, the whale transferred it all to a Coinbase custody wallet, suggesting long-term holding.
In fact, the whale has been aggressively accumulating LINK. So far, this custody wallet now holds a total of 5.315 million LINK, worth more than $44 million. Such a steady accumulation shows total confidence in the market, with the holder eyeing long-term gains.
Market demands rebound to 2024 levels
Besides this whale accumulation spree, LINK investors have been digging in despite the extended market weakness.
Notably, the altcoin’s Netflow has remained negative for more than five consecutive weeks. At press time, Chainlink’s Exchange Netflow was around -40.4k.
The last time Chainlink Netflow had such a long run in the negative territory was in October 2024. This period of accumulation followed a major price pump, during which LINK jumped from $10 to $29.
However, this time is different: Chainlink’s Exchange Supply Ratio (ESR) has accounted for exchange outflows. In fact, ESR has been on a prolonged decline, reaching a new low of 0.12.
Such a strong decline in ESR points towards seller exhaustion, and it seems that most traders are not incentivized to sell. Instead, most participants are more determined to hold for the long term ahead of another price jump.
With the 2024 market pattern repeating itself, the question is whether demand will also follow another price hike. If historical patterns are anything to go by, the altcoin will recover and make some gains.
Can LINK breakout finally?
Although demand has recovered to 2024 levels, Chainlink’s price action has yet to keep pace. In fact, the altcoin’s downside momentum remains elevated.
The altcoin’s CMF fell into negative territory, falling to -26.39 as of writing, indicating that recent losses outweighed gains.
Thus, with bears in control, LINK is likely to remain under pressure unless the momentum improves. If this momentum persists, LINK will likely hover around $8. However, if the demand finally materializes and the market feels it, Chainlink is likely to flip $9.
Final Summary
- A whale purchased 800K LINK from Coinbase, worth $6.8 million, raising total holdings to 5.315 million LINK, worth $44 million.
- Chainlink demand recovered to 2024 levels, but the market’s downside momentum remains relatively strong.
