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Chainlink outperformed most altcoins in September, posting a 35% rally to $8.2. However, the sharp correction witnessed in October has many analysts wondering if the rally was simply a buy the rumor sell the news narrative.
The largest decentralized blockchain oracle solution protocol ranks #19 among all cryptocurrencies, including stablecoins. It has dipped 5.4% over the last seven days and 2.3% in the last 24 hours.
Trading volume has been on an upward drift as the price dips, revealing a spike in selling pressure. Chainlink price is doddering at $7.16 on Thursday as bulls rush to set camp at $7 in a bid to arrest the bearish situation.
Is Chainlink Price Poised To Resume the Uptrend?
Chainlink’s massive upswing in September had most investors believing that the token would make it above $10. However, a pullback was due, with the resistance it encountered at $8.2. For the uptrend to continue, LINK needed to sweep through lower support areas to collect liquidity.
This support area may be lying at $7 but traders must keep their minds open, considering the Moving Average Convergence Divergence (MACD) reveals a sell signal. This call to sell LINK manifested on October 6 with the blue MACD line crossing below the red signal line.
The 21-day Exponential Moving Average (EMA) (red) limits movement to the upside. Hence, resistance at $7.33 must come out of the way for bulls to fully take control of Chainlink’s movement.
Breaking the immediate support at $7 would imply that bulls extend the search for support to the confluence at $6.8 formed by the 100-day EMA (blue) and the 200-day EMA (purple).
Chainlink Whales Buying The Dip
Blockchain analytics platform Santiment recently reported a 6% increase in the number of addresses with between 100k and 10 million LINK compared to September 18. According to Santiment, following whale activity often portends the direction of the market.
🐳🦈 #Chainlink's market value sits at $7.31, trading ahead of most of #crypto over the past 12 hours. Watch where smart money is going, particularly wallets with between 100K to 10M $LINK, which have 6% more addresses in this range compared to Sep. 18th. https://t.co/80kUW3q9Hj pic.twitter.com/kUY9TL9K1J
— Santiment (@santimentfeed) October 11, 2023
Large volume holders could be buying the dip following the jump to $8.2. With interest in LINK rising, the next rebound could be significant and push the token above $10.
Meanwhile, Chainlink is finding itself at the core of the tokenization of real-world assets (RWAs), with investors confident that the protocol’s token LINK could be the “safest bet” when seeking exposure and profiting from the hype.
K33 analyst David Zimmerman said in a recent report “If we wish to have exposure to the RWA narrative and avoid being sidelined when it takes off, LINK is the safest bet.”
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