Whales Accumulate Chainlink Amid Dip as On-Chain Activity Hits 8-Month High

Chainlink’s (LINK) price has seen a pullback following its August 13 high of $24.74, though whale activity has intensified, suggesting a potential rebound. Large holders continue to accumulate the token, viewing the current dip as an opportunity for a future upward move. Whale transactions over $100K have reached a seven-month high, with recent data showing 992 such transactions on a single day. These movements are often interpreted as bullish signals in the crypto market [5].

Meanwhile, on-chain metrics are showing strong user engagement. The number of daily active Chainlink addresses has climbed to 6,463, the highest in eight months, according to Santiment. This increase indicates that more users are interacting with the network, which may point to growing adoption and utility [1].

Analysts have also noted a surge in social sentiment, particularly among Chainlink supporters, who have been active on social media since early February. This increased visibility could contribute to further price momentum. Additionally, over 2 million Chainlink tokens were moved between August 11 and 13, a move often associated with investors transferring holdings to cold storage, potentially in anticipation of an uptrend [5].

On the technical side, Chainlink is currently trading at around $21.59 after a week of sideways movement. Despite the pullback, it remains in positive territory across its monthly, three-month, and six-month charts. The asset has gained 111% in the past year and outperformed 79% of the top 100 cryptocurrencies. It has also remained above its 200-day moving average, a technical indicator of strength [5].

The Fear & Greed Index for LINK stands at 56, indicating a level of greed and optimism among traders. This is supported by the continued accumulation by whales and the recent launch of Chainlink’s Data Streams product, which aims to connect the crypto ecosystem with traditional markets. These developments suggest that the network is positioning itself for broader adoption and increased utility [5].

Despite the positive signs, risks remain if the $21.34 support level fails. A break below this threshold could push the price as low as $19.51. Analysts have set potential price targets ranging from $29 to $46, contingent on the continuation of bullish momentum. A successful breakout above $22 could trigger further buying and validate the current optimism [5].

Whale activity and growing network participation have positioned Chainlink for a potential breakout. As large holders continue to build positions and on-chain metrics show positive trends, the market appears to be preparing for the next phase of growth. However, investors are advised to remain cautious and monitor key support levels closely [5].