After LINK fell by 16%, can whales indeed change the course of Chainlink’s future?

Recently, the price of Chainlink (LINK) dropped by 16%, attracting widespread attention from market participants regarding its future direction. However, it’s worth noting that large investors, commonly referred to as “whales,” have been actively increasing their holdings in LINK. Data shows that whales’ holdings in LINK increased by 4.59% within just four days, reaching 646 million units. This indicates their long-term confidence in this asset. Additionally, a new wallet transferred approximately 935,000 LINKs from Binance, valued at around $16.9 million. Such actions are often seen as signs of expectations for future price increases. These signs suggest that although prices may face short-term pressure, the continuous increase in whale holdings could provide a solid foundation for LINK’s future.

How do whales respond to the decline in LINK prices?

Whale holdings increased by 4.59% to 646 million LINKs, while the net flow became -7.62 million dollars, indicating strong accumulation of physical tokens.

What insights can derivatives offer regarding Chainlink’s next moves?

The futures counterparty CVD remains bullish, with a bull-bear ratio of 3.38. The EMA20 at $20.3 remains a key resistance level.

After a brief attempt to break through, Chainlink’s price encountered strong resistance at $20. Subsequently, the token declined for three consecutive days, reaching a low of $17.70.

As of publication, the price of LINK is $17.98 – a decrease of 5.3% in 24 hours, and 16.8% in one week.

During this period, whales increased their holdings after a recovery in September.

Whales bought LINK at lower prices.

According to Nansen's data, the balance of LINK held by top holders increased by 4.59%, bringing the total holdings of whales to 646 million units. The positive changes in whales' balances have continued for four consecutive days, indicating a steady increase in their holdings.

In addition, Onchain Lens reported that one whale user purchased 934,516 units of LINK, worth $16.92 million. Historically, such increases during market downturns reflect investors' confidence and long-term bullish sentiment.

Moreover, exchange activities further support this trend of accumulation.

Indeed, according to CoinGlass data, as of the time of publication, the net flow of LINK was -7.62 million dollars, indicating an increasing outflow of funds and strong pressure for physical accumulation.

Futures activities show that whales dominate the market.

It's worth noting that AMBCrypto observed that most of these whales were investing in futures markets.

CryptoQuant's CVD indicators for futures traders remained positive over the past week, indicating continued buying power in the derivatives market.

Interestingly, this trend coincides with a surge in average order sizes, with whales continuing to dominate the market for four consecutive days.

This further confirms that institutional traders are expanding their positions during periods of market volatility in LINK.

Meanwhile, Coinalyze data shows that the ratio of long to short positions has risen to 3.38, with long positions accounting for 77.15% of total contracts—clearly indicating a bullish outlook among derivatives traders.

The price of Chainlink still lags behind the accumulating trends indicated by

. Despite these positive indicators, AMBCrypto believes that the price of LINK has not yet reflected this accumulating trend.

Therefore, LINK may experience further losses before a rebound. If the downward trend continues, the coin could find support at $16.94, which is below the lower boundary of the Bollinger Bands.

However, continued inflows from whales could help absorb selling pressure and drive prices back up to around $20.3, near the EMA20 level.

Breaking through this level could pave the way for a rise to $24 (the upper boundary of the Bollinger Bands), marking a potential next upward target.