- LINK, the unsung hero of the crypto world, has caught the eye of savvy investors with its heavy key stakeholder dip buying.
- Is it time to add this altcoin to your portfolio?
The recent market-wide correction has left Chainlink (LINK) battered and bruised, with a double-digit weekly drop. But fear not, dear reader, for this may just be the perfect opportunity to scoop up this undervalued gem.
As we speak, LINK is nearing a key support zone that has sparked big rebounds before. However, with uncertainty running high, is this the ideal “dip-buy” moment – or a cunning trap waiting to ensnare the unwary?
A short-term recovery or a long-term rebound?
At the time of writing, LINK is down a whopping 34.5% from its mid-December high of $30, with the RSI stuck in neutral territory. The frenzied buying spree seen post-election, when trading volumes soared to $8 billion, is but a distant memory – trading has remained stubbornly below the $1 billion mark all week.
A return to those heady heights doesn’t seem likely for now. However, January has shown that LINK has bounced back strongly around its current price point. If history is any guide, there could be a tantalizing 40% upside potential just waiting to be tapped.
While trading activity has slowed as volatility sent investors scurrying for cover, the whales have been quick to snap up the bargain. The amount of LINK held by these deep-pocketed investors has hit an 8-month high of 611.3 million, marking a nearly 4% increase since mid-December, just as LINK began its recovery.
In the past week alone, whale supply has increased by 0.54%. If this trend continues, the current $17-$19 price range could act as a formidable support, paving the way for a potential 40% recovery. Keeping a close eye on this could be crucial.
However, this is a short-term play. For a long-term rebound, strong fundamentals matter, but broader market sentiment cannot be ignored. So, does this make LINK the “asset to watch” when the market finally rebounds?
LINK: The next big thing?
With 1,659 daily $100K+ LINK transactions – the highest since 2023 – and 9,531 active wallets, the momentum is building. Once the sell-side pressure subsides, Chainlink could once again set its sights on its $30 high. But there’s one more crucial factor to consider.
The LINK/BTC pair posted its longest green candlestick, with a 22% daily gain, matching LINK’s $30 high as BTC surged past $100K. The broader bullish sentiment propelled investors towards Chainlink, boosting its market cap to a three-year high of $18.32 billion.
For a sustained rebound, the broader crypto market must recover. The total crypto market cap is currently 13% off its peak.
In the meantime, Chainlink is displaying strong fundamentals and could present a prime dip-buying opportunity for a potential 40% rebound. Whale activity and daily transactions are breaking monthly lows, positioning LINK as the “asset to watch” once economic uncertainty clears.
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2025-02-05 21:52