Chainlink Cryptonewsfocus.com
- Chainlink has surged 66% from its April low to $16.72, driven by bullish technical patterns and rising retail investor interest.
- However, whales have offloaded 41 million LINK tokens, and declining on-chain metrics raise concerns about the sustainability of the rally.
Chainlink (LINK) has staged an impressive recovery in recent weeks, even as large holders offload millions of tokens. The price surged to $16.72 on Friday morning, climbing 66% from April’s lows and signaling renewed investor interest. But behind the bullish chart pattern, on-chain data reveals mixed signals.
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Whale Activity Casts a Shadow on LINK’s Rally
While retail investor confidence in Chainlink remains strong, with LINK holders rising from 730,000 in January to over 761,000 today, whales appear to be losing faith. Data shows that the total LINK supply held by large addresses has plunged from 611 million to 570 million since January—a sharp drop of 41 million tokens.
This significant offloading suggests profit-taking or repositioning by major holders, even as broader interest in Chainlink’s role in decentralized finance (DeFi) and real-world asset (RWA) tokenization continues to grow.
Another concerning metric is the 365-day Mean Dollar Invested Age (MDIA), which declined from 127 in April to 115 today. A lower MDIA typically indicates reduced investor conviction, hinting at weakened network engagement over time.
Technical Analysis Points to Further Gains
Despite whale selling, Chainlink’s technical setup remains optimistic. The recent bounce followed a classic falling wedge breakout—often a precursor to bullish reversals. The price now trades above its 50-day exponential moving average and is within range of the 61.8% Fibonacci retracement level, a key area watched by traders.
More importantly, LINK has established an ascending channel, reflecting a steady uptrend. A break above the resistance at $18 could clear the path to the $20 mark, provided it maintains support above the 50-day EMA.
Outlook: Bullish Bias but Watch the Whales
Chainlink continues to solidify its position as a core infrastructure player in the crypto space, particularly with its Cross-Chain Interoperability Protocol (CCIP) gaining traction among major firms. While technical indicators favor more upside, the ongoing reduction in whale holdings could limit the rally’s strength or introduce volatility.
Investors should monitor both technical levels and on-chain behavior closely, as Chainlink navigates this complex phase of accumulation and distribution.
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