Chainlink bulls have defended the $8 support level valiantly over the past two weeks. The Chainlink reserve climbed to 2 million tokens, valued at around $17 million.
The positive Spot ETF inflows to LINK also showed steady demand for the altcoin.
AMBCrypto had reported that the token was trading within a long-term symmetrical triangle pattern. The weekly RSI dropped to 32 for the first time in LINK’s history.
A lower-timeframe bullish flag pattern developed in recent weeks, contrasting with the higher-timeframe momentum. This has increased the expectations of a short-term bullish breakout.
Rising accumulation trends reflect long-term holder conviction
Source: Glassnode
The Holder Accumulation Ratio metric on Glassnode measures the portion of active holders who are buying or accumulating. It is calculated as the ratio of holders who increased their positions to all holders who saw a change in their balance.
Toward the end of January, the metric fell to a low of 66.06%. This month, the ratio has soared to 74.8%. The ratio has been below the 67%-69% area for most of the past two years.
The rising accumulation trends coincided with sideways price movement and some selling pressure from short-term holders.
Santiment data captured how the 3-month LINK holder cohort was facing sizeable losses. The 90-day MVRV ratio of 24.29% meant that the average LINK buyer in the past three months was facing a 24% loss.
At the same time, the 90-day Mean Coin Age has plunged considerably.
Together, it showed that the 3-month-old Chainlink [LINK] holder cohort, who fell into the short-term holder category, were aggressively selling Chainlink tokens over the past three weeks.
Meanwhile, the 180-day Dormant Circulation remained quiet.
The 180-day Mean Coin Age continued its steady uptrend as well. These metrics suggested that the longer-term holders remained sidelined or were adding to their holdings.
There was no spike in this age group’s dormant circulation, which would have indicated a wave of selling pressure.
Overall, it remained possible that Chainlink bulls can recover from the setbacks in recent months.
However, there was a more pessimistic view that investors should consider, too.
The final capitulation from the long-term holders has not yet taken place. Therefore, there is no rush to buy- it is also possible that LINK prices have to undergo one more bearish impulse wave.
Final Summary
- The Chainlink accumulation ratio rose in recent weeks alongside evidence that longer-term holders refused to sell their holdings.
- This could be a sign that the final LINK holder capitulation has not taken place yet, a sobering thought for underwater investors.