Chainlink [LINK] It has been regarded as one of the safest investment options. Its unique features are responsible for this.
It’s important to note that Chainlink is not immune to the effects of broader market drawdown. Surprisingly though, the market recently flipped the trend and the whales decided to follow the trend.
Chainlink escapes downtrend
LINK whales remained active until the beginning July. This cohort generated $75 million in average transactions.
Sometimes, it even exceeded $340 million. Whale activity dropped significantly around the end June after a significant spike on 28 June.
These holders conducted transactions worth nearly $2 billion at this time.
Chainlink whales transactions | Source: Intotheblock – AMBCrypto
These transactions generated an average of $25m to $30m each year.
These developments could be justified by the fact that 522.09k investors are currently suffering heavy losses.
But that wouldn’t make sense since the figure has been similar for almost two months now.
More than 78% have been in losses since May 2022 as LINK consolidated. Investors were not affected by the June price fluctuations.
Chainlink investors in loss | Source: Intotheblock – AMBCrypto
It can thus be said that the movements did not arise from bearishness, but rather bullishness.
Most investors are avoiding moving their holdings because of the optimism of Chainlink, which signals recovery.
LINK saw the first signs of recovery when it attempted to reclaim its 50-day Simple Moving Averages (SMA), which are critical support assets.
Second, the MACD showed rising bullishness on the 19th of July.
Chainlink price actionSource: TradingView – AMBCrypto | Source: TradingView – AMBCrypto
If LINK is able to maintain its 50-day Simple Moving Average support it will be able to reclaim the 23.6% Fibonacci level red. Additionally, it could also have the chance to take back $8.35.