Investors turn to accumulation as Chainlink price crashes by 20% in two weeks
|- Chainlink price slipping below $5.5 is currently at a three-year low, last visited by LINK in July 2020.
- Since the beginning of the month, the supply on exchanges has declined by more than $25 million.
- Most of this accumulation could be attributed to the surge in new investors, potentially looking to profit off the recent dive.
Chainlink price observed one of the biggest declines this month, facing major losses from the recent crashes. The response from investors during such a time is usually bearish, but LINK holders are reacting against expectations. Instead of selling, these investors have decided to buy more.
Chainlink price fall leads to buying
Chainlink price since the beginning of the month has noted a 20.52% depreciation, with the value of the altcoin now declining to what it was in July 2020. Trading at a nearly three-year low, the altcoin is still keeping above the $5 mark, which currently acts as a critical psychological support level.
LINK/USD 1-day chart
With a decline as severe, the crypto market is generally considered to be spooked. The investors are expected to go back into hiding and not come out until the potential for profits emerges. However, this time around, LINK holders reacted much differently as they leaned in further on accumulating than selling.
While buying over selling is always the preferred option for the betterment of the network, this time around, investors’ buying has been influenced by the hope of profits. In the span of two weeks, the availability of LINK on exchanges has declined considerably, suggesting LINK holders are leaning in the other direction. At the time of writing, the supply on exchanges had declined by more than $25 million.
Chainlink supply on exchanges
However, most of this is potentially the work of new investors that have recently joined the network. The network growth indicator is used to detect the rate at which new addresses are being formed on the network.
A spike in the same suggests that the project is gaining traction among users, which is good timing for recovery. Usually, these investors aim to profit off of the rises and more; however, this could take a while at the moment.
Chainlink network growth
The far-reaching bearishness is not going to come down anytime soon, leaving the new addresses also susceptible to potential losses. However, in the likely event of the cryptocurrency actually recovering, it would need to chart at least a 25% rally to rise back to pre-June crash levels.
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