Chainlink bulls have valiantly defended the $8 support level over the past two weeks. The Chainlink reserve has soared to 2 million tokens, valued at around $17 million.
Positive inflows from Spot ETF to LINK also showed steady demand for the altcoin.
AMBCrypto had reported that the token was trading in a long-term symmetrical triangle pattern. The weekly RSI fell to 32 for the first time in LINK history.
A shorter time frame bull flag pattern has developed in recent weeks, contrasting with the momentum over a longer time frame. This has increased expectations of a near-term bullish breakout.
Upward Accumulation Trends Reflect Holders’ Long-Term Conviction
Source: Glassnode
The Holder Accumulation Ratio metric on Glassnode measures the share of active holders who are purchasing or accumulating. It is calculated as the ratio of holders who increased their positions compared to all holders who saw their balance change.
Towards the end of January, the indicator fell to a low of 66.06%. This month, the ratio soared to 74.8%. The ratio has remained below the 67-69% area for most of the past two years.
Upward accumulation trends have coincided with sideways price movement and some selling pressure from short-term holders.
Source: Santiment
Santiment data showed how the cohort of 3-month LINK holders faced significant losses. The 90-day MVRV ratio of 24.29% meant that the average buyer of LINK over the past three months faced a loss of 24%.
At the same time, the average coin age of 90 days has dropped significantly.
Together, this showed that the cohort of 3-month-old Chainlink (LINK) holders, 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 calm.
The average coin age of 180 days also continued its steady upward trend. These measures suggested that longer-term holders were staying away or increasing their holdings.
There was no spike in dormant circulation in this age group, which would have indicated a wave of selling pressure.
Overall, it remains possible that Chainlink bulls can recover from the setbacks of recent months.
However, there is a more pessimistic view that investors should also consider.
The final capitulation of the long-time holders has not yet taken place. Therefore, there is no rush to buy – it is also possible that LINK prices may have to undergo another round of bearish impulse.
Final summary
- The Chainlink accumulation rate has increased in recent weeks, alongside evidence that longer-term holders have refused to sell their holdings.
- This could be a sign that the final capitulation of LINK holders has not yet occurred, a sobering thought for underwater investors.
