Chainlink’s Liquidity Map Indicates Potential Growth

Chainlink’s Liquidity Map Indicates Potential Growth – Are Buyers Ready to Act?

Chainlink (LINK) is currently trading at a 53% discount from its August peak, with significant whale activity leading to increased liquidity. Recent trends show strong buyer momentum and accumulation across exchanges, suggesting a possible bullish recovery. This article explores how these factors could influence LINK's price movement in the near future.

Key Takeaways

Chainlink (LINK) is trading at a 53% discount, with notable whale inflows primarily from Binance wallets.
Increasing taker buy volume, better liquidity, and a Long/Short Ratio above 1 indicate a potential bullish recovery.
Investors are re-entering the market by accumulating LINK, although this buying activity hasn't yet translated into price increases.
Whale investors on Binance are at the forefront of this trend, supported by broader market participation as traders invest their stablecoins in LINK.

Chainlink’s Liquidity Map Indicates Potential Growth – Are Buyers Ready to Act?

Whale Activity on Binance

In the last 24 hours, LINK has experienced a spike in inflows from whale wallets, which are known for holding significant liquidity in the market. Notably, the top 10 wallets have contributed to this surge, lifting the monthly average inflow to about 3,150 LINK, equivalent to around $42,000 at the time of writing. This trend of accumulation aligns with LINK trading at a striking 53% lower than its peak in August, prompting many investors to see this as an opportunity to reinvest.

LINK Top 10 Whale Activity

Source: CryptoQuant

In the derivatives market, liquidity continues to improve as more traders anticipate an upward price movement. Recent figures show that the Taker Buy Sell Volume on Binance reached 2.21, indicating that buyers are gaining a stronger foothold in the market.

Alignment with the Broader Market

The general market sentiment appears to be aligning with the increasing accumulation trend. Recent on-chain and exchange data reveal that investors are purchasing LINK across multiple platforms, indicating widespread interest. Since the start of the week, about $11.75 million has been spent on LINK in the spot market, illustrating significant capital inflows beyond just Binance.

LINK Spot Exchange Netflow

Source: CoinGlass

In the derivatives sector, the Long/Short Ratio remains above 1, currently at 1.024. A ratio exceeding 1 implies that the majority of trading volume is driven by buyers, suggesting a bullish sentiment. If this trend continues, LINK could potentially recover from its recent lows and gain upward momentum.

Potential for Recovery

LINK appears to have a solid pathway toward a possible rally, especially given the distribution of liquidity clusters. According to CoinGlass data, there is a more significant concentration of liquidity above the current price than below it. Typically, prices tend to move toward areas of higher liquidity.

LINK Liquidation Chart

Source: CoinGlass

The presence of increased liquidity in the upper range suggests that if momentum continues to build, we might see an upward price shift soon. However, the decisions of whales, retail traders, and derivatives investors will be crucial in determining whether LINK can capitalize on this potential for growth.