Bitrabo Editorial
After closing two consecutive months in the red, Chainlink (LINK) seems to have hit a bottom at $5.06, its three-year low, and found support. The recent surge in whale trading activity indicates an imminent price recovery for LINK, with whales looking to scoop up the dip and other strategic investors considering staking their tokens to mitigate losses. At present, the outlook for a bullish price reversal in the coming weeks looks promising.
Chainlink Whales Transaction Hits 2023 Peak
Chainlink’s large, institutional investors have started betting big on LINK again, after three months of decline. The below chart by IntoTheBlock shows that whale transactions involving LINK spiked by almost 400% between June 4 and June 13, from 21 transactions to 103 large transactions, reaching a 2023 peak on June 10.
Whale investors play a significant role in any blockchain ecosystem by providing market liquidity and absorbing sell pressure during contractions. With the current decline in prices, the whales are positioning themselves for an imminent LINK price recovery by buying the dip. This trend is likely to ignite bullish sentiment among strategic retail investors soon.
Investors Staking LINK to Soften Unrealized Losses
With the LINK price at its lowest in three years, LINK holders are facing unprecedented unrealized losses. Consequently, most of them have turned towards yield-bearing staking opportunities to mitigate their losses. According to Glassnode, the supply of staked LINK on various DeFi protocols has seen a significant increase of 776,000 tokens (0.15% of total circulation supply) locked up in smart contracts between June 5 and June 13. The Supply in Smart Contracts metric measures staking activity by evaluating the changes in the percentage of total circulating supply of tokens locked up in smart contracts. Therefore, the declining supply of LINK circulating on exchanges could trigger a price recovery in the coming days.
LINK Price Prediction: Potential Rebound Towards $6
Considering the growing confidence exhibited by Chainlink’s whale investors, it is highly likely that the LINK price will skyrocket towards $6 soon. However, it is imperative to clear the initial resistance at $5.50 for the bulls to be confident of the price recovery. According to the In/Out of The Money Around Price (IOMAP) metric by IntoTheBlock, LINK is expected to encounter initial resistance at the $5.50 mark. And, 3,120 investors who bought 4.2 million LINK at the average price of $5.48 pose a significant sell-wall at that zone. LINK could rally towards $6.04 if it manages to push past the resistance zone. Conversely, if the price unexpectedly drops below the critical support zone of $5, bears could invalidate the LINK price recovery. But, the 2,810 investors who purchased 4.45 million LINK tokens at the minimum price of $5.06 will likely prevent the drop – though unlikely, LINK could further retrace towards $4.45 if the support level cannot hold.
Disclaimer
The content is for informational purposes only and should not be considered financial or investment advice. Bitrabo strives to ensure accurate and unbiased reporting but the market conditions can change at any time, without any prior notice. The readers are advised to conduct independent research and consult with professional financial advisors before finalizing any investment decisions.