In a significant move, large holders of Chainlink (LINK) have acquired more than 20 million tokens since early November, totaling around $263 million. This accumulation aligns with a price rebound toward the $20 threshold, with current trading around $12 to $13.
According to data from Santiment, the top 100 wallets containing LINK have collectively increased their holdings by 20.46 million tokens. This purchasing trend coincided with a brief recovery phase for LINK before it entered a consolidation period.
The accumulation activity from these major wallets indicates a long-term bullish perspective, contrasting with the more speculative trading behaviors often seen in the market. On-chain analysis shows that these whales are not making quick trades but are instead steadily increasing their positions.
Recent discussions surrounding JPMorgan“s plans for Ethereum tokenization have amplified the focus on Chainlink“s role in providing secure data feeds and facilitating cross-chain messaging. Institutional interest in these features underscores the necessity for robust infrastructure that supports compliance and auditability.
While large holders are strategically increasing their LINK positions, the derivatives market suggests a different sentiment. Open interest in LINK futures has dropped to $545 million, indicating that speculative traders are retreating amid price fluctuations.
As Chainlink stabilizes above the $12 support level, it has historically occurred at a long-term ascending trendline, a significant marker for buyers since June 2023. This trendline has previously acted as a crucial accumulation zone, leading to substantial price increases following similar patterns.
The current price action of LINK, which has seen a 54% drop from its recent high of $27.87, presents an opportunity for large holders to further solidify their investments. Network operations remain stable, suggesting that the trend towards concentrated ownership is likely to continue.
The contrasting signals from the futures market and on-chain accumulation highlight a divide between long-term holders and short-term traders. As LINK continues to trade sideways between $15 resistance and $12 support, market participants are awaiting a catalyst to drive significant movement.
A breakout above the $15 resistance level could set the stage for a potential rally towards the $20 mark. The coming days will reveal whether buyers can generate enough momentum to surpass this critical threshold.
