Beware! This Bearish Signal Could Be a Sign of LINK Capitulation Still Ahead

Jakarta, Pintu News – Chainlink (LINK) is back in the spotlight amidst high crypto market volatility. Many investors are beginning to wonder, is a major capitulation phase still ahead? Recent data suggests a difference in behavior between short-term and long-term holders. This article will take a closer look at the bearish signals to look out for before making an investment decision on Chainlink (LINK).

Long-Term Holder Accumulation Trend Strengthens

In recent weeks, holders of Chainlink (LINK) with a maturity of 180 days have shown a tendency to continue adding to their holdings. Based on data from Glassnode, the holder accumulation ratio jumped from 66.06% at the end of January to 74.8% this month. This figure is well above the average of the past two years which ranged from 67%-69%. This phenomenon signals strong confidence from long-term investors in LINK’s price recovery potential in the future.

On the other hand, LINK’s price movement tends to stagnate with selling pressure coming from short-term holders. Nonetheless, there was no major spike in circulation of the long-standing token, which usually signals the beginning of a massive wave of selling. This reinforces the notion that long-term holders are still choosing to hold on or even add to their portfolios. As such, the main selling pressure is currently coming from the new group of holders.

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Short-Term Holders Experience Losses, Selling Pressure Increases

Data from Santiment revealed that the Chainlink (LINK) group of holders over the past 90 days suffered significant losses. The 90-day MVRV ratio stood at 24.29%, meaning that the average LINK buyer in the last three months saw a 24% drop in value. In addition, the 90-day Mean Coin Age also dropped dramatically, indicating a high token turnover due to the sell-off of short-term holders. This phenomenon shows that the selling pressure in recent weeks has been dominated by investors who are new to the market.

Meanwhile, the group of holders with a token age of 180 days shows the opposite trend. The 180-day Mean Coin Age continues to rise, signaling that they prefer to hold or increase their holdings. The absence of a spike in the Dormant Circulation of this group also reinforces the signal that they have no intention of making a major sell-off. This creates a sharp contrast between the behavior of short-term and long-term holders.

Short-term Breakout Potential, but Capitulation Risk Still Lurks

Although there is a bullish flag pattern on the low timeframe that raises hopes of a short-term breakout, the momentum on the weekly timeframe shows the opposite signal. The weekly RSI indicator for Chainlink (LINK) dropped to 32, the lowest level in the token’s history. This indicates that selling pressure is still very strong and the potential for further price declines has not completely disappeared. Analysts warn that without any capitulation from long-term holders, LINK’s price recovery will still face severe challenges.

Moreover, despite positive inflows from Spot ETFs into Chainlink (LINK), this has not been enough to reverse the ongoing bearish trend. LINK’s reserves on exchanges increased by 2 million tokens or approximately $17,000,000, signaling the potential for additional selling pressure if market sentiment worsens. Investors are therefore advised to remain vigilant and not rush into long positions before there is confirmation of capitulation from long-term holders.

Conclusion

Overall, despite signals of optimism from long-term holders, the risk of a large capitulation on Chainlink (LINK) still looms. Selling pressure from short-term holders incurring losses could trigger the next wave of price declines. Investors need to pay attention to on-chain data movements and wait for confirmation before making investment decisions. With market conditions still full of uncertainty, caution is the main key in dealing with LINK’s price movements going forward.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• AMBCrypto. Is LINK capitulation still ahead? Investors should watch this bearish signal. Accessed on February 23, 2026