Whale Moves and Investor Sentiment Shape Altcoin Bets on ADA and LINK

Cardano (ADA) and Chainlink (LINK) have emerged as notable altcoins in the current market cycle, with analysts identifying them as undervalued assets that could see renewed investor interest in the months ahead. ADA, currently trading at $0.8244, faces downward pressure as large investors offload 50 million tokens within a 48-hour span, per analyst Ali Martinez. This activity has pushed ADA closer to the $0.80–$0.82 support zone, a critical area where a successful rebound could spark a recovery. However, breaking below this level might exacerbate the downward trend, adding to the growing bearish sentiment among retail traders. According to Santiment, the ratio of positive to negative comments on ADA has fallen to 1.5:1 from 12:1 in early August, signaling a shift in market psychology [1].

Despite the near-term challenges, historical patterns suggest that whale activity often precedes accumulation opportunities. Retail traders, frustrated by three consecutive weeks of price declines, may find themselves exiting positions, potentially creating a scenario where larger players step in to buy at lower levels. A recent price rebound from $0.78 to $0.82 supports this view, hinting at a possible retest of the $1 level if ADA holds within its broader ascending structure. Technical indicators point to the Fibonacci 0.382 retracement at $0.82 as a decisive level, with some analysts labeling it a "make-or-break zone." If ADA confirms a recovery here, it could see a move toward $1.20 or $1.40, as suggested by analyst Crypto King [1].

Meanwhile, Chainlink (LINK) has shown resilience amid a broader market slump, trading above $24 and maintaining a strong position in the decentralized finance (DeFi) sector. Over the past month, LINK surged roughly 20%, outpacing the DeFi category average of 16%. The token is currently valued at $24.03, with a market cap of $16.31 billion and a fully diluted valuation of $24.05 billion. The asset's performance is supported by key developments, including the filing of the first U.S. spot Chainlink ETF by Bitwise and a strategic partnership with Japan’s SBI Group to advance tokenized assets and stablecoin infrastructure. Despite these positive catalysts, LINK faces resistance at previous high levels, with analysts noting that clearing $27 could be pivotal for further upward momentum [2].

Institutional interest in Chainlink has also risen, with investment flows into products focused on the network increasing notably in recent weeks. The token’s utility in connecting smart contracts with real-world data continues to attract attention from both retail and institutional investors. With a circulating supply of 678 million LINK and a max supply of one billion, the token’s valuation remains relatively attractive compared to its all-time high of $52.99. The Chainlink Reserve has also increased its holdings, acquiring an additional 41,105 tokens in recent weeks, a move that reinforces confidence in the network’s long-term potential [2].

Analysts view both ADA and LINK as potential breakout candidates in the coming months, particularly if broader market conditions stabilize and investor sentiment improves. While ADA faces immediate technical hurdles and whale selling pressure, its price action and historical accumulation patterns suggest it could test key resistance levels. Similarly, LINK’s resilience and ongoing institutional adoption position it as a strong candidate for continued growth, especially with the potential approval of a spot-based ETF. Both projects represent compelling opportunities for investors seeking exposure to altcoins with strong fundamentals and clear use cases in the evolving blockchain landscape [1, 2].

Source:

[1] Cardano Whales Are Dumping, Traders Not Happy: Will ADA Price Hit New High? (https://finance.yahoo.com/news/cardano-whales-dumping-traders-not-081256153.html)

[2] Chainlink Price, LINK Price, Live Charts, and Marketcap (https://www.coinbase.com/price/chainlink)