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- Chainlink (LINK) remained stable during Bitcoin’s recent price drop, supported by increased whale activity.
- Whale accumulation and positive developments, like Ronin’s adoption of Chainlink’s protocol, signal potential long-term growth.
Chainlink (LINK) held its ground during Bitcoin’s price drop on October 10, triggered by higher-than-expected CPI inflation data. The total cryptocurrency market cap shrank by 1.2%, with LINK holding steady against USDT and rising 0.2% against BTC. The main reason for this stability may be attributed to the rising whale activity.
According to Santiment, large investors have been buying more LINKs since the recent market decline. From 1st October to 8th October, the number of large holders rose from 489 to 502, which means whales are back in the market.
A rise in the number of whales is generally considered as a bullish signal, suggesting that big investors are preparing for future price rises. Their activity can also mobilize the retail investors and increase the attention towards the market. Even though the recent whale spike is relatively small, it suggests that major holders are becoming more hopeful, which may be the precondition for the rally.
In addition, according to IntoTheBlock, the whale netflow has been increasing since October 8. This rise in whale holdings is concurrent with the 7-day MVRV Ratio drop from 8.12% to -4.41%, indicating more LINK holders are in the red. This change may alter the behaviour of investors and, indeed, spur more investments.
Positive Developments Drive Chainlink Demand
Besides whale accumulation, there are other factors that contribute to Chainlink’s positive outlook. Ronin, an Ethereum Virtual Machine (EVM) blockchain primarily for gaming, has also adopted Chainlink’s cross-chain interoperability protocol (CCIP). This decision strengthens the security of Ronin’s bridge and allows the project to focus on the acceleration of its development.
In addition, the integration will force Ronin to buy LINK tokens from the open market, which is a positive for the token. This development is consistent with Chainlink’s increasing importance as a backend service provider for decentralized applications, which should support LINK’s long-term appreciation.
Technical Analysis Shows Bearish Trends
Chainlink has seen a slight increase in value in the past month, registering a 1.68% increase. However, LINK’s current price of $10.66 shows a minor 1.0% decline, which points to the fact that it is still struggling in the market that has been in a decline since the last bull run.
The LINK/USDT pair’s price action indicates a bearish trend, as the price is trapped within a symmetrical triangle. It has broken through the lower trendline, which indicates that more falls are possible. If LINK breaks and holds below this level, it may come under further selling pressure, and a target of $8 may be seen in the near term. Some support could be obtained here, although the recovery remains unclear.
Technical indicators also point to growing bearish momentum. The MACD is still seeing increasing strength from sellers as the momentum bars continue to darken to reflect increasing pressure. Furthermore, Stochastic RSI indicates that LINK is oversold, meaning that sellers hold the majority in a market.
