Chainlink's 40% Drop: Whales Buy $20M, Analysts See Rebound or Deeper Correction

Over the past month, Chainlink (LINK) has experienced a significant decline in value, with its price dropping by nearly 40%. This downturn has raised concerns among investors about the potential for a rebound and whether recent shifts in network activity might signal a recovery. As LINK's performance falters, analysts have stepped in to assess its trajectory and offer insights into its future prospects.

Ali, a renowned crypto analyst, recently shared his perspective on Chainlink's current position. He highlighted a nearly 40% price drop over the past month and noted a network contraction that may point to reduced activity. Ali also pointed out that LINK's MVRV ratio, an indicator of profitability for recent traders, currently sits at a loss of 16%. This level has historically preceded a pause in selling pressure, suggesting that the current drawdown could be nearing an end.

Despite the prevailing market conditions, there are signs of renewed interest among major investors. Ali highlighted that whales have acquired over $20 million worth of LINK in just the last 24 hours, hinting at a potential shift in sentiment. However, for a confirmed rebound, Ali suggested that LINK must break above the $19 mark to target $23.70. He also cautioned that if LINK fails to maintain its current support near $15.50, a deeper correction could follow.

Another analyst, known as Crypto Elite, offered a more optimistic outlook. According to Elite, the prolonged downtrend for Chainlink that began in 2021 has recently been broken, providing a foundation for future gains. Elite identified ambitious price targets at $53, $100, and even $144, suggesting that the current phase might represent the early stages of a significant upward move.

Notably, the coming weeks will be critical for Chainlink as it attempts to stabilize and possibly regain lost ground. It would be worth watching closely to see whether LINK can hold key support levels, sustain whale interest, and eventually climb past pivotal resistance points. As the market continues to evolve, investors and analysts alike will be keeping a close eye on Chainlink's performance to gauge its potential for recovery and growth.