- LINK’s Smart DEX traders started reaccumulating in the past 24 hours.
- The volatility chart revealed that LINK has seen a substantial decrease in volatility, sitting at 80.47%.
The cryptocurrency market thrives on patterns and insights, where the actions of Smart DEX Traders can often signal future price movements.
Recently, wallet 0xbb90 made a significant move by purchasing 53.2K Chainlink [LINK], amounting to $1.0M, within the past 24 hours. This wallet has previously profited $629.8K from LINK, with a 136% return.
Coupled with an uptrend in Cumulative Volume Delta (CVD), these actions suggest a potential bullish scenario for LINK.
Accumulation patterns
AMBCrypto’s analysis of Smart DEX Traders’ accumulation over time showed a clear upward trend in buying activity, particularly highlighted by a recent sharp increase in accumulation.
This suggests that traders are increasingly confident in the future value of LINK.
Source: iCrypto.ai
Furthermore, the average buy price line, signaled that investors were willing to buy in at these levels, anticipating future growth.
This provided a bullish indicator, showing that Smart DEX Traders may be driving the next price rally.
In terms of DEX position analysis, the chart illustrated periods of significant buying activity, with buy volume surpassing sell volume, particularly during price dips.
Source: iCrypto.ai
This suggested a strategic accumulation by traders who see dips as an opportunity to buy LINK at undervalued prices.
This accumulation often precedes price recoveries, with upward momentum expected once the buying pressure becomes overwhelming.
Calm before the storm
The volatility chart revealed that LINK had seen a substantial decrease in volatility, sitting at 80.47% at press time.
Historically, lower volatility phases have preceded sharp price movements in the crypto market, often leading to a ‘volatility squeeze’—a scenario in which price breaks out after a period of consolidation.
Source: IntoTheBlock
With this decrease in volatility, combined with the continued accumulation by Smart DEX Traders, it’s plausible that LINK could experience significant price increases if the current sentiment remains positive.
A similar pattern of low volatility leading to price surges has been observed in the past, further supporting the potential for upward movement in LINK’s price.
LINK’s future takes shape
Further, netflow analysis showed a positive trend, with aggregated exchanges reporting a rise in net flows, as highlighted in the recent data.
Source: IntoTheBlock
In particular, LINK has seen a notable increase in inflows of 703.42K LINK over the past 30 days.
So, despite the volatility, traders are still showing a growing interest in accumulating LINK, further reinforcing the bullish outlook.
The shift in net flows aligns with the accumulation pattern seen in the previous section, where increased demand could push prices higher as more $LINK is absorbed by the market.
Understanding LINK’s current market position
For the global in/out of the money positions, approximately 77.99% of LINK holders are currently in profit, with the majority of positions clustered around the $4.17 to $6.94 price range.
Source: IntoTheBlock
This suggests strong support for LINK at these levels, as holders are unlikely to sell unless there’s a significant price movement.
On the other hand, approximately 15.09% of holders were ‘out of the money,’ with positions spread between the $19.48 to $20.82 price range.
These holders could act as a form of resistance if LINK’s price approaches these levels.
However, the dominance of profitable positions leans towards a bullish sentiment, with many holders likely holding onto their positions for further price gains.
