Chainlink (LINK) may be entering another accumulation phase after on-chain analytics firm Santiment identified a familiar buy signal.
According to the firm’s latest data, LINK’s 30-day average return (MVRV) recently dropped below –5%, a level that has historically marked strong entry opportunities for investors.
Santiment noted that this metric, which tracks the average profit or loss of all LINK wallets that have transacted in the past month, has been a consistent indicator of market capitulation. “When traders’ average 30-day returns fall below –5%, it’s typically a sign of widespread pain, and that’s where ideal entry points tend to emerge,” the report explained.
Following this signal on Friday, LINK’s price immediately rebounded by 9.5%, showing early signs of renewed buying pressure. The chart shared by Santiment highlights previous instances where similar MVRV dips preceded substantial price recoveries, suggesting that the current setup could mark the start of another rally phase.
Analysts also pointed out that LINK’s ratio versus Bitcoin (BTC) has started climbing again, signaling potential rotation from BTC into Chainlink. With recent integrations into Real World Asset (RWA) protocols and growing adoption of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), traders are eyeing whether this technical rebound could align with expanding network utility.
For now, Santiment cautions that the recovery remains fragile, but if historical MVRV patterns repeat, LINK could see further upside as sentiment shifts from fear to cautious optimism.