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- Chainlink wallets surpass 535,000 as holders accumulate despite weakness.
- LINK remains below key averages while network participation keeps growing.
- Rising holder count signals long-term confidence despite bearish price action.
A significant milestone has been achieved on the Chainlink network as the number of wallets with some LINK in their holdings has reached its highest levels in over 3 years. According to Santiment on-chain data, the number of tokens held by more than 535,000 wallets is the highest since Dec. 2022.
The rise is coming after LINK has been languishing on the price chart. But despite the asset trading at much lower prices than the previous cycle, investors still seem to be rotating assets on what is still a fairly robust network instead of exiting. The surge in the number of holders has come at a disadvantage for Chainlink, resulting in a widening gap between market cap and holders.
In this recent pullback, Santiment’s new indicator seems to indicate that it is still in accumulation mode.Santiment data show that buying hasn’t stopped since the previous pullback. Immediately there’s a lot of investors willing to defend LINK and it seems that they feel the same regardless of the markets being in an extended weakness. This steady growth in wallet numbers has thus emerged as one of the most impressive signs of sustained confidence in the network.
In the past, expansion of holders has been correlated with increased market participant adoption and conviction. With an increasing number of wallets though, it may indicate that investors are taking a more long-term view on the investment of an asset, while short-term traders are more likely to be buying and selling.
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Holder Growth Continues While LINK Faces Bearish Pressure
With the increased participation, LINK is still under pressure from the sellers. In the last few months, the token has broken through several major support levels and is locked in a battle to find the $8 support level. Also, the LINK is on a bear market as it is moving below its 50 day, 100 day and 200 day moving averages.
The price action has also set up a lower highs, lower lows pattern, which suggests that buyers are not in the driver’s seat. However, momentum traders may be losing some ground as evidenced by a few technical indicators. The Relative Strength Index has been bouncing back from a recent string of down days, and is approaching oversold territory, indicating that the selling pressure may be ebbing.
In the current situation, however, what’s interesting is that growth has continued for the holders despite the bad chart. It seems that many investors are actually loading up on LINKs during this low price period, instead of cutting back. This has seen the number of non-micro holders fall to non-years levels.
Link’s role in the digital asset industry continues to be solid. The network remains in operation and still runs oracle services to power blockchains, which allow them to feed data from external sources. Furthermore, Chainlink has expanded its activities to real-world assets, cross-chain infrastructure, and tokenized assets.
Despite the price slump, the wallet participation has been a continuous rise, indicating that many investors are still optimistic about the long-term prospects of the network.
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