Chainlink (LINK) Price Plummets 40%, But Whale Accumulation Hints at Possible Recovery

Chainlink's Market Value to Realized Value (MVRV) ratio dropped to -16.3%, a level that previously marked exhaustion points for selling.

Chainlink (LINK) price dropped sharply in recent weeks, sparking concerns among investors. However, whale activity suggests confidence in the token’s long-term potential.

In the last 24 hours, large holders have accumulated more than $20 million in LINK, hinting at a possible price recovery.

Chainlink MVRV Drops to Historical Sell-Off Zone

On-chain analyst Ali reported that Chainlink’s Market Value to Realized Value (MVRZ) dropped to -16.3%, a level that marked exhaustion points for selling in the past. According to historical data, when MVRV dipped below -16%, LINK rallied afterward, notching gains between 25% to 312%.

Now, with whales aggressively buying the dip, traders are watching for a reversal from current levels.

Moreover, over 1.10 million LINK tokens changed hands in the last 24 hours, a strategic move by major investors, according to Ali. He added that similar whale activity in the past preceded strong upward moves.

However, analysts warn that Chainlink price action is at a critical juncture, and a key breakout is needed to confirm a bullish shift.

LINK Price Stuck in a Range — Breakout or Breakdown Next?

Market observers like Suzzy highlighted that LINK has been trading within a tight range, with $17.50 and $19.50 as the key levels to watch. A decisive move above $19.50 could propel LINK toward $21 or higher, but failure to break through resistance might keep it trapped in consolidation.

Meanwhile, technical analyst Nebraskangooner suggested that LINK could drop further if it loses its key support level. He noted that if the token falls below $15.50, it might revisit the $12.00 support zone. Previously, LINK’s price rebounded after testing these levels, but traders are cautious as momentum weakens.

The Relative Strength Index (RSI) on the daily timeframe is 38.83, showing that Chainlink is approaching oversold conditions. In previous cycles, LINK rebounded when the RSI dipped below 40, adding to the case for a potential price reversal.

The descending parallel channel in the chart highlights two key levels traders should watch. A breakout above $19 would confirm a bullish reversal, opening the door for a push toward $23.70. However, if LINK fails to hold above $17.50, a deeper correction toward $15.50 or even $12.00 could be on the table.

Santiment ranked the project as the top Real World Asset (RWA) project in terms of growth, outpacing competitors like Synthetix and MakerDAO. This suggests that long-term fundamentals remain intact, even if short-term volatility persists.

For now, traders are watching two key levels — $17.50 and $19.50. A breakdown could lead to more losses, but if LINK holds or breaks out, a rebound may follow. With whales buying heavily, it’s clear that some big players are betting on a recovery. Whether they’re right remains to be seen.