Chainlink Whales Strike Back Amid Downward Price Volatility

Chainlink Whales Accumulate $40 Million Worth LINK In A Week, What’s Next?

October 17, 2023

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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After a strong rally at the start of the month, the Chainlink price has been under a bit of retracement facing dome downward volatility. At press time, the Chainlink price is trading just under the $7.50 level taking support above the long-term macro trend.

Chainlink Whales Have Been Accumulating

Despite the downward selling pressure, Chainlink whales have been accumulating strongly over the past week.

On-chain data provider Santiment explains that Chainlink’s current price is $7.51, representing a remarkable 30% increase over the past 5 weeks. During this period, wallets holding 100,000 to 1,000,000 $LINK have been accumulating aggressively, adding a total of $38.5 million worth of coins in just the past week. These significant accumulations by larger holders carry greater significance than the profit-taking actions of small retail traders.

Conversely, the ratio of on-chain transaction volume indicates that retail investors have been consistently striving to capitalize on favorable market conditions. When the Chainlink price experiences an uptick, they tend to act quickly by moving their coins.

The LINK Price Action

With Chainlink’s price currently at $7.56, it has seen a nearly 2% increase over the past 24 hours, recovering 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 positioned. Maintaining this support is crucial for LINK’s recovery towards $8.01.

As LINK stands just 13% away from its year-to-date high of $8.58, it requires a series of positive candlesticks to achieve this upward momentum. The Relative Strength Index (RSI) lends support to this idea, rebounding from the neutral line at 50.0, indicating the presence of bullish momentum.

This momentum has the potential to propel the price toward $8.01, bringing it closer to the next significant resistance level at $8.38. However, if LINK fails to hold the support line, it could negate the bullish scenario, leading LINK to test the support line at $6.91.