Chainlink’s price faces volatility after a strong month start but remains above support. Whales accumulate $38.5 million worth of LINK. Bullish momentum suggests potential gains.
Highlighting Points
- Chainlink price faces downward volatility after early-month rally.
- Chainlink whales accumulate $38.5 million worth of LINK in the past week.
- Retail investors actively capitalize on market conditions.
- LINK aims to recover towards $8.01, with RSI indicating bullish momentum.
After a strong start to the month, the Chainlink (LINK) price has experienced a slight retracement, encountering some downward volatility. As of now, LINK is trading just below the $7.50 level, managing to maintain support above its long-term macro trend.
#Chainlink | The total volume of transactions by $LINK whales and institutional players is increasing significantly. These large players transacted over 20 million #LINK yesterday, valued at nearly $150 million. pic.twitter.com/3Ky0dhXkCf
— Ali (@ali_charts) October 14, 2023
Chainlink Whales on the Move
One remarkable trend in the midst of this price fluctuation is the accumulation of Chainlink by whale-sized investors. Despite the downward selling pressure, these influential LINK holders have been actively accumulating over the past week.
According to on-chain data provider Santiment, Chainlink’s current price stands at $7.51, reflecting an impressive 30% gain in the last five weeks. During this period, wallets holding 100,000 to 1,000,000 LINK tokens have been accumulating aggressively, adding a total of $38.5 million worth of coins in just the past week. This substantial accumulation by larger holders carries more weight than the profit-taking actions of small retail traders.
In contrast, on-chain transaction volume ratios suggest that retail investors have been quick to capitalize on favorable market conditions. Whenever the Chainlink price experiences an upswing, retail investors promptly move their coins.
As of now, LINK is priced at $7.56, marking a nearly 2% increase in the last 24 hours, rebounding from a 5.3% dip. The coin has found support at the $7.40 level, preventing it from sliding to $7.00, where the 50-day Exponential Moving Average (EMA) is situated. Maintaining this support is pivotal for LINK’s potential recovery toward the $8.01 mark.
Chainlink stands just 13% away from its year-to-date high of $8.58, and achieving this upward momentum requires a series of positive candlesticks. The Relative Strength Index (RSI) supports this notion, rebounding from the neutral line at 50.0, signifying the presence of bullish momentum.
Concluding Thoughts
This bullish momentum has the potential to drive the price closer to $8.01 and bring it within reach of the next significant resistance level at $8.38. However, failure to hold the support line could negate this bullish scenario, potentially leading LINK to test the support line at $6.91.
Chainlink’s recent whale accumulation and the resilience of its support levels amidst market fluctuations indicate continued investor interest in the project. While the short-term outlook remains uncertain, the presence of bullish momentum, as indicated by the RSI, suggests that LINK could be poised for further gains if it can maintain key support levels and overcome resistance barriers. Traders and investors will be closely monitoring these developments to gauge the next move in the Chainlink market.
