Chainlink’s price action has been rather lackluster as of late, with its price lacking a clear trend as it consolidates alongside Ethereum and the rest of the crypto market.
However, there’s a strong possibility that this will soon shift as Bitcoin’s ongoing uptrend will eventually lead to a capital rotation even that causes significant inflows of capital to move from BTC and into higher-risk assets like altcoins.
Once this occurs, LINK will likely be one of the first altcoins to gain some serious momentum due to its tendency to post parabolic movements.
Not only is Chainlink bullish from a technical standpoint, with strong support below $11.00 sparking rebounds with every attempted selloff, but the cryptocurrency also has some fundamental factors playing in its favor.
According to one analytics firm, the top 100 Chainlink holders have been aggressively accumulating at these price levels, providing it with strong buy-side support and showing that large investors are confident that upside is imminent.
Chainlink Continues Consolidating Above $11.00 as Altcoins Struggle to Gain Momentum
At the time of writing, Chainlink is trading up just under 1% at its current price of $11.15. This is around where it has been trading for the past several days.
Overnight, LINK’s price dipped as low as $10.80, but the buying pressure here was significant and stopped it from seeing any intense selloff.
It has been struggling to gain any momentum as of late, and it is becoming closely tied to Ethereum’s price action.
ETH has been guiding most altcoins, so until it catches a tailwind from Bitcoin and pushes higher, there’s a strong chance that Chainlink and most other altcoins will also continue consolidating.
Analytics Firm: Top LINK Investors are Accumulating
Per a recent report from analytics firm Santiment, the top Chainlink holders have been taking the recent consolidation phase as an opportunity to accumulate large positions.
“If this isn’t the depiction of steady accumulation for Chainlink’s top 100 non-exchange whales in the past year, we don’t know what is. LINK’s offline increase in tokens at this rate truly shows confidence in the asset from those with most at stake.”
Image Courtesy of Santiment.
It could be quite a while before Chainlink breaks its current accumulation phase and rallies higher, but when it does, it could see some immense gains that allow it to gain ground against Bitcoin.
Featured image from Unsplash. Charts from TradingView.