Will the whales' increased buying of dip support LINK after falling 21.4%?

The price of Chainlink (LINK) was strongly rejected at the price level of $20 after a short term breakout attempt. Since that time, this token has recorded consecutive bearish trends for three days, hitting a low of $17.35.

At the time of writing, LINK is trading at $17.42, falling 3.9% in the last 24 hours and 21.4% over the past week.

LINK Price Chart | Source: Coinphoton## Whales increase dip purchases

According to data from Nansen, large investors (whales) have increased their accumulation, raising their balance to 4.59% with 646 million LINK. The balance volatility of the whales has remained positive for four consecutive days, confirming stable accumulation.

Source: NansenNotably, Onchain Lens recorded a large purchase transaction from a single whale with 934,516 LINK, worth 16.92 million USD. History shows that accumulation at locally reduced price levels often reflects confidence and a short term bullish trend.

Moreover, trading activities on the exchange have also reflected this accumulation trend. Data from CoinGlass shows that the net flow of LINK is at -7.62 million USD, indicating an increase in outflow and strong accumulation pressure.

Source: CoinGlass## Whales dominate the futures market

When examining the activities of whales, Coinphoton noted that they primarily focus on the futures market. The CVD index from CryptoQuant for futures has remained in the green throughout the past week, indicating the dominance of buyers in the derivatives markets.

Source: CryptoQuantInterestingly, this move aligns with the increase in order size, where transactions from large investors have dominated the market for four consecutive days. This further strengthens the argument that institutional investors are expanding their exposure during LINK's correction.

Source: CryptoQuantAt the same time, data from Coinalyze shows that the Long/Short ratio has increased to 3.38, with long positions accounting for 77.15% of the total contracts — heavily leaning towards a bullish trend among derivative investors.

Source: CoinalyzeChainlink price outlook

Despite these bullish indicators, coinphoton notes that the price of LINK has not yet reflected the accumulation wave. In this context, LINK may record further losses before recovering. If the bearish trend continues, this altcoin may find support at the lower boundary of the Bollinger band at $16.94.

Source: TradingViewHowever, the inflow of funds from whales has the potential to absorb selling pressure and drive a recovery towards the EMA20 near $20.3. A breakout above this level could pave the way to $24 —the upper Bollinger band—marking the next growth target.

Mr. Teacher