Since breaking the $10 support in mid-March, Chainlink has struggled to regain it. The altcoin traded in a downtrend, reaching a low of $8.2.
With the price remaining below $10, whales stepped in to accumulate.
Chainlink whales are back with a vengeance
Despite the weak market structure, Chainlink has seen intense whale activity. According to Darkfost, Binance whales have aggressively accumulated LINK.
Analysis of the top 10 outflow parameters showed a clear increase in whale withdrawals. More than 8,000 links were pulled daily via the largest outflows.
Furthermore, average monthly outflows increased from 2k links to 2.6k links per day.
This move is consistent with increased interest from large entities during market weakness. Historically, strong demand for whales has supported price recovery.
In fact, ongoing withdrawals have reduced supply on exchanges. Exchange supply ratio data from CryptoQuant showed a steady decline during the month of February.
At press time, the bid-exchange ratio stood at 0.127, near its monthly lows. This decline confirmed the ongoing accumulation since mid-February.
Traditionally, such conditions set assets up for a potential reversal. However, Darkvost noted that the previous accumulation had failed to raise prices.
Can request to enhance the link
Since reaching $8.2, LINK has formed higher highs within a secondary upward channel. However, the broader trend remained bearish.
At press time, Chainlink (LINK) was trading at $9.1, up 4.96% daily. Trading volume jumped by 74%, indicating stronger participation.
Moreover, momentum has strengthened. The momentum indicator rose from negative territory to 0.41.
This shift indicates weak selling pressure and increased control over the buyer.
This strength corresponds to the Relative Strength Index. The RSI rose from 46 to 51, confirming a bullish crossover.
Historically, such setups have supported short-term upside. If demand holds, LINK could reclaim $9.5 and retest the $10 resistance.
However, the market remained fragile. Sellers continued to apply pressure.
In fact, net flows became positive, reaching 190 thousand. This indicates selling activity during recent gains.
This shift has left the market vulnerable. Continued selling could push LINK back towards $8.4.
Final summary
- Chainlink remained below $10 after breaking support in mid-March, with the price falling to $8.2.
- The accumulation of whales intensified, with more than 8,000 links withdrawn daily from the top of Binance’s outflows.
