Chainlink (LINK) price is facing challenges as technical indicators show bearish momentum. LINK’s EMA lines recently formed a death cross, indicating continued bearish pressure.

Whale activity and the MVRV ratio provide mixed signals about LINK’s future.

Whale Activity Signals LINK Recovery

Users holding between 100,000 and 1,000,000 LINK tokens seem to be recovering after the recent correction. Tracking these whales is crucial because they often significantly influence market direction. Whales have the power to sway prices due to the large volumes they control, making their behavior a key indicator of market sentiment.

When whales accumulate or hold large amounts of a token, it can signal strong confidence in the asset, while a reduction in whale holdings can indicate bearish sentiment or uncertainty. Their numbers grew from 489 on October 1 to 502 on October 8, showing a notable recovery in whale activity.

This increase suggests that whales are once again accumulating LINK, which could point to an expectation of future gains.

Read more: Chainlink (LINK) Price Prediction 2024/2025/2030

The recent surge in whale holdings, though modest, could be a positive sign for LINK’s price, suggesting renewed confidence among large holders and the potential for upward pressure. A rise in whale activity often indicates accumulation, which may precede a price rally as buying pressure mounts.

Large holders returning to the market can create a more solid foundation for LINK price to regain lost ground, especially if broader market conditions begin to stabilize or turn bullish. Moreover, whale activity is often a precursor to significant market moves.

As more whales return, it can create a ripple effect, driving renewed interest among retail investors and sm

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Author: Tiago Amaral