Chainlink Price Analysis Hints $20 Rally Amid Whale-Driven Momentum
Highlights
- The downsloping resistance trendline drives the current correction trendline in Chainlink price.
- The $12.2 floor stands as a crucial accumulation zone for crypto buyers.
- The intraday trading volume in the LINK coin is $259 Million, indicating a 12.8% loss.
Chainlink Price Analysis: During the June market correction, the Chainlink price experienced a sharp decline, suffering a 26% loss over the month. However, as supply pressures subsided over this weekend, buyers succeeded in maintaining support above the $12.2 level, which has been a critical floor since November 2023. This level is now viewed as a key turning point for a potential reversal from the recent significant drop.
Also Read: Bitcoin Price Analysis: How Bull Flag Defends $1 Trillion Market Cap for BTC
Chainlink Price Analysis: Whales Build Positions with $86.7 Million in LINK
As the market witnesses a massive crash over the weekdays, a fresh recovery hits over the weekend. With a similar trend, the LINK price sustains above the $12.59 support level with a lower price rejection on Friday.
This completes a morning star pattern with the 7.28% bullish engulfing candle. In the larger trend, the ongoing correction phase marks a negative cycle within a triangle pattern.
As the buyers abruptly halt the negative cycle before reaching the support trendline, a bullish reversal is likely to start.
Also Read: Spot Bitcoin ETFs Saw $143 Million Inflows on Friday, Institutions Buying The Dips?
Recent on-chain data reveals a significant accumulation of Chainlink (LINK) by whales and institutional investors. A total of 90 fresh wallets have withdrawn approximately 6.72 million LINK, valued at $86.7 million, from Binance recently.
It seems that whales/institutions are accumulating $LINK!
We noticed that 54 fresh wallets withdrew 2.08M $LINK($30.28M) from #Binance in the past 7 days.https://t.co/SkqA1r0F1N pic.twitter.com/VkPt0kwPb4
— Lookonchain (@lookonchain) July 2, 2024
Additionally, another set of data from Lookonchain reveals that 54 fresh wallets withdrew 2.08 million LINK, valued at $30.28 million, from Binance around late May to Early June. The continuous accumulation of LINK by large wallets underscores the growing confidence and interest in Chainlink’s long-term potential.
The anticipated bull cycle can test the overhead declining trendline that has caused two bearish reversals within the triangle. Further, it could reclaim the $15 psychological mark.
Currently, altcoin trades at $12.919 with an intraday drop of 1.98%. This undermines the bullish recovery but the action sustains above the critical level of $12.58.
With the breakout rally, the LINK price could hit the $20 mark in the coming weeks. However, the broader market movements will be crucial in deciding the fate.
Will the Market Crash Drop LINK Under $10?
Despite the lower price rejection bolstering bull cycle likelihood, a bearish pattern looms over the daily chart. With a neckline at $12.58, the altcoin reveals a head and shoulder pattern.
A drop-down under this neckline will put additional stress over the ascending support trend line. This increases the breakdown chances and could result in an end-of-recovery phase. A breakdown rally could hit the bottom support level at $9.46.
Technical Indicator:
- BB: The LINK price challenging the lower boundary of Bollinger Band indicator suggests the sellers remain active towards LINK coin.
- MACD: The sideways trend in the MACD and signal lines are indecisive as the price halts a crossroads.
Frequently Asked Questions (FAQs)
1. What is a bullish engulfing candle?
2. What is a bearish reversal?
3. How does whale activity influence the cryptocurrencies price?
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