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Chainlink faces a pivotal moment with substantial accumulation, yet on-chain indicators signal ongoing bearish sentiment.
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Currently, LINK maintains support above $12.57, suggesting strong investor interest; however, overall market metrics raise concerns about a sustainable rally.
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According to a recent report from COINOTAG, the significant number of addresses accumulating LINK highlights a critical demand zone that could play a role in future price movements.
This article examines Chainlink’s price dynamics amidst rising accumulation and bearish on-chain metrics, impacting investor sentiment and market outlook.
Chainlink: Rebound or Deeper Correction?
At the time of writing, LINK traded at $12.88, marking a 1.14% decline over the past 24 hours. Price action indicates LINK is oscillating around the $12.57 support level after breaking a multi-month downtrend.
This level is crucial; a robust rebound could propel LINK towards resistance levels at $15.57, eventually targeting $17.78. However, should bearish sentiment re-emerge, LINK may slide toward the next support threshold at $10.17.
Hence, the near-term trend for LINK is contingent on whether buyers can uphold this key price floor and avert further losses.
Source: TradingView
What Does Exchange Activity Reveal?
Exchange depositing addresses have increased by 1.54%, while withdrawing addresses saw a lesser rise of 0.78%. This discrepancy indicates that more LINK holders are transferring tokens to exchanges, potentially gearing up for selling.
Nevertheless, the slight uptick in withdrawals indicates that long-term holders retain confidence by opting for self-custody solutions.
In summary, exchange metrics reflect a neutral-to-cautious sentiment among investors as they navigate both technical setups and wider macroeconomic uncertainties.
Source: CryptoQuant
Evaluating Bearish On-chain Indicators
On-chain indicators currently project a predominantly bearish outlook. Net network growth is tepid, registering at 0.15%, suggesting a stagnation in user adoption.
Moreover, the percentage of addresses “in the money” has decreased by 0.95%, indicating that a greater number of holders are presently at a loss.
Compounding this trend, large holder concentration fell by 0.17%, coupled with a 12.28% decline in large transaction volumes, hinting that whales are scaling back their exposure. These metrics reflect reduced confidence across the market spectrum.
The MVRV long/short difference currently stands at -6.37%, indicating that short-term holders are incurring greater unrealized losses compared to long-term investors. Typically, this scenario signals panic selling, with weaker hands exiting the market.
Nevertheless, such conditions could also lay the groundwork for potential price reversals if accumulation persists. As such, it is imperative to observe price movements near support in the forthcoming days.
Source: Santiment
Chainlink must hold above $12.57 and reclaim higher resistance levels to signal a bullish breakout. However, at present, on-chain metrics remain bearish, with lingering selling pressure posing a risk.
Consequently, LINK is not yet set for a decisive bullish breakout; further downside may be imminent unless a robust buying momentum emerges shortly.
