- LINK’s Smart DEX traders have begun reaccumulating over the last 24 hours.
- LINK’s volatility chart shows a significant decrease, currently at 80.47%.
The cryptocurrency market relies heavily on patterns and insights, where the actions of Smart DEX Traders often indicate future price movements.
A notable wallet, 0xbb90, purchased 53.2K Chainlink (LINK) for $1.0M in the past 24 hours. This wallet had previously profited $629.8K from LINK, achieving a return of 136%.
The increase in Cumulative Volume Delta (CVD) suggests a potential bullish scenario for LINK.
Accumulation Patterns
AMBCrypto analyzed the accumulation trends among Smart DEX Traders, revealing a pronounced uptick in buying activity, particularly highlighted by a recent sharp increase. This indicates heightened confidence in LINK’s future value.
The average buy price line shows that investors are willing to buy at current levels, anticipating growth, providing a bullish indicator as Smart DEX Traders could drive the next price rally.
DEX position analysis reveals consistent buying activity, with buy volume exceeding sell volume, especially during dips. This indicates a strategic accumulation by traders looking to purchase LINK at undervalued prices. Such accumulation generally precedes price recoveries, with upward momentum expected as buying pressure increases.
Calm Before the Storm
The volatility chart indicates that LINK has significantly decreased in volatility, currently at 80.47%. Historically, lower volatility phases often precede sharp price movements in the crypto market due to a ‘volatility squeeze,’ where prices break out after consolidation.
With the reduction in volatility and ongoing Smart DEX Traders’ accumulation, LINK could see substantial price increases if the positive sentiment persists. A similar trend of low volatility leading to price boosts has been seen previously, further reinforcing LINK’s potential for upward movement.
LINK’s Future Takes Shape
Netflow analysis shows a positive trend, with exchanges reporting increased net flows, particularly highlighting a rise in inflows of 703.42K LINK over the past 30 days.
Despite ongoing volatility, traders are increasingly interested in accumulating LINK, further supporting a bullish outlook. This shift in net flows aligns with previous accumulation patterns, indicating that as demand rises, prices could increase with more LINK absorbed into the market.
Understanding LINK’s Current Market Position
Regarding global in/out of the money positions, about 77.99% of LINK holders are in profit, with most positions clustered between the $4.17 to $6.94 price range. This indicates strong support for LINK at these levels, as holders are likely not to sell unless a significant price movement occurs.
Conversely, approximately 15.09% of holders are ‘out of the money,’ with positions primarily between $19.48 to $20.82. These may act as resistance if LINK’s price approaches these levels.
However, the predominance of profitable positions leans towards a bullish sentiment, suggesting many holders are waiting for further price gains.
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