HODLing doesn’t seem to be attractive to LINK whales at the moment

In 2020, LINK quickly became one of the top five assets on the market. The strong midsummer bull run pushed the altcoin to ~ $ 20. By 2021, the price has risen again, reaching a new all-time high of $ 53. However, in the past few weeks the price has fallen 66% and is currently trading at $ 18,347.

Price table LINK | Source: Tradingview

Additionally, on-chain metrics can change as well, and any of these changes could shed more light on the future value of LINK.

LINK whale dealer: easing accumulation?

LINK price (green) and percentage of the offer from top addresses (purple) | Source: Santiment

According to the data, LINK’s total supply of the top 10 whale addresses has fallen to 63.3% – the lowest accumulation since 2017. A higher whale accumulation caused a bullish effect for LINK last year than the top 100 addresses almost 80% of the shares held the issue.

This situation can have two-sided effects for LINK in the short-term and long-term scenario.

In the past year, some analysts have pointed out that LINK is too concentrated in the hands of a few owners. Therefore, this is not a negative situation as large-cap investments should be diversified. LINK’s commitment to more users will allow the asset to be more resilient to volatility and less reactive to whale trading.

However, the top 10 still accounted for more than 60%. This is still a large number, and when you factor in the length of time, the decrease in total supply held is consistent. In March 2020, almost 18 months ago, the total supply was around 69%.

Short term downward pressure?

Whale traders circulate more LINK tokens during the bear market and increase the supply of the asset due to the essentially low demand. While this may not affect the price as much as expected (due to the lower selling pressure in the market), it does not help LINK to recover faster on the chart.

Exchange credit (purple) and exchange credit for 7 days (gold) | Source: Santiment

It is important to note, however, that the net balance on the exchange did not change much in any direction during the bearish rally. According to the attached chart, the entry and exit lines are consistent, suggesting that LINK is not yet in the focus of traders.

30-day MVRV rate | Source: Santiment

With the MVRV (ratio of market value to actual value) remaining negative for the past 30 days, LINK’s investments remain bleak. So the hodling doesn’t seem to be attractive to whales at this point. Only time will tell whether LINK can develop the same dynamic during the market recovery or whether it will continue to hold its own in the industry.

Minh Anh

According to AMBCrypto

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