Chainlink Price News: Whales Accumulated $300M Worth of LINK in Less Than 45 Days

Chainlink (LINK) has booked a 13.3% loss in the past 7 days as the crypto market tanked following last week’s FOMC meeting.

What was initially deemed as the beginning of a recovery seems to be a bear market rally for the time being, even though investors keep piling into top tokens silently.

In LINK’s case, it seems that whales have been frantically buying the token since the price hit $15 and have progressively increased their stash.

LINK Held by Top 100 Addresses – Source: Santiment

Data from Santiment shows that top wallets holding LINK have increased their holdings from around 628 million to 650 million tokens since the beginning of November, even though the price has kept dropping.

This means a massive $330 million investment into the token in a relatively short period. Until then, whales had been progressively dumping LINK.

New Chainlink ETP Brings In Significant Inflows

It appears that the approval of an exchange-traded product (ETP) in the United States for this altcoin may have persuaded deep-pocketed investors to start accumulating the token again.

Data from CoinShares shows that LINK ETPs brought in nearly $57 million in assets since December started. This may not sound like much, but it meant a 34% increase in the total assets held in these vehicles.

Something is going on under the hood, and a handful of investors know that something big is coming. This kind of trend is repeated across certain top tokens like XRP (XRP), which has kept a streak of 21 consecutive days of positive net inflows.

Is something brewing for altcoins? Whales seem to know something, and it might be a good time to start listening.

LINK Failed to Reverse Its Downtrend

Earlier this month, LINK broke a long-dated downtrend following the launch of Grayscale’s LINK ETP. The launch of this vehicle was considered a pad in the back for this blockchain project.

LINK/USD Daily Chart (Kraken) – Source: TradingView

Its assets under management currently account for nearly half of the total held in LINK-linked ETPs. This reflects growing investor interest in the token at a point when Chainlink’s solutions are being embraced by top institutions, including a handful within the U.S. federal government.

This bullish breakout of the token’s descending triangle was confirmed by above-average volumes. Nonetheless, the price started to decline shortly afterward, following the Federal Reserve’s interest rate decision.

This bearish continuation coincided with a rejection of a structural price zone at $14.5. This is LINK’s previous lower low. Hence, if the price breaks above that mark, it would confirm a trend reversal.

The Relative Strength Index (RSI) has also dropped below the 14-day moving average, as this wave of positive momentum was not strong enough to keep the oscillator above the mid-line.

The key area of support to watch if LINK keeps dropping would still be the $11 level. The token has bounced nearly three times off this level in the past, meaning that it is an area of high interest for bulls.

If LINK drops below $11, the token could retest the October 10 lows of $10 caused by the flash crash. On the other hand, if LINK manages to rise above $15, the downtrend will be invalidated, and the token could keep climbing toward $17 first and $20 afterward.