Chainlink (LINK) has seen a decline in large holder netflow to exchanges over the past month.
The negative large holder netflow to exchange netflow ratio suggests that whales are accumulating LINK.
The MVRV ratios over 30-day and 365-day moving averages indicate that LINK is trading at a discount.
The previous month has been characterized by a notable decrease in Chainlink’s (LINK) large holder netflow to exchanges, signifying that the altcoin’s major holders have only transferred a small fraction of their holdings to exchanges for sale.
This behavior can be attributed to LINK’s current price performance, with the altcoin trading at $14.31, having experienced a 21% decline in value over the past month.
Chainlink Price Drop Coincides with Decreased Whale Netflow to Exchanges
As LINK’s price continues to fall, the netflow from its whales to cryptocurrency exchanges has also witnessed a significant reduction. In the last 30 days, this metric has decreased by an impressive 110%, highlighting the reluctance of large holders to sell their assets during the current market conditions.
At the time of writing, LINK’s large holder netflow to exchange netflow ratio stands at -0.06%, indicating that only a small portion of the total exchange netflow can be attributed to transfers from whales to exchanges.
According to the token’s market value to realized value (MVRV) ratios, the current market conditions may present an opportune moment for LINK holders anticipating a rebound to consider purchasing the altcoin.
At present, the token’s MVRV ratios, assessed over 30-day and 365-day moving averages, stand at -3.7% and -1.0%, respectively.
This metric compares an asset’s current market price to the average price at which every coin or token for that asset was acquired. When the MVRV ratio is negative, as is the case here, it indicates that the market price of the asset is lower than the average purchase price of all its tokens in circulation.
Such a scenario is often viewed as a buy signal, as it suggests that the asset is trading at a discount relative to its historical cost basis, potentially offering investors an attractive entry point.