Chainlink Price Analysis: Whale Accumulation Pattern Sets LINK for Major Reversal
Highlights
- The LINK price extends its current correction trendline until the overhead trendline of the wedge pattern is intact.
- The $12.2 support accompanied by wedge pattern support and 200W EMA creates a strong accumulation zone.
- The intraday trading volume in the LINK coin is $281 Million, indicating a 25% gain.
The cryptocurrency market is showing signs of bullish momentum, with Bitcoin steadily aiming to reclaim the $60,000 level. This uptick in market recovery was catalyzed by the German Government’s decision to liquidate its entire Bitcoin holdings yesterday, alleviating significant supply pressure. As this positive trend permeates the altcoin sector, the Chainlink price analysis shows a three-day rally to rise 6% and reach a trading value of $13.1.
Also Read: Bitcoin Price Eyes $70k Rally as Long-Term Holders Accumulate at Record Pace
Chainlink Price Analysis: Whales Amassing 12.75 Million LINK
Amid the ongoing market consolidation, the Chainlink price managed to stabilize above $12.2. This horizontal level accompanied by the support trendline of falling wedge patterns created strong accumulation points for buyers.
Thus the demand pressure uplifted the asset to $13.12, while the market cap jumped to $7.97 Billion. A recent analysis from the on-chain data tracker lookonchain revealed that a number of unidentified entities, likely a whale or an institutional investor, have been accumulating substantial amounts of Chainlink (LINK) coins.
It seems that a mysterious whale/institution is accumulating $LINK!
We noticed 93 fresh wallets withdrawing 12.75M $LINK($167M) from #Binance since June 24!https://t.co/SkqA1r0F1N pic.twitter.com/AJR4fT36VG
— Lookonchain (@lookonchain) July 14, 2024
Since June 24, 2024, lookonchain has identified 93 new wallets involved in the withdrawal of approximately 12.75 million LINK, valued at roughly $167 million, from Binance. However, Coingape reported a similar instance of whale-buying activities in early June, highlighting a recurring pattern of accumulation during market downturns.
Read Here: Chainlink Price Analysis Hints $20 Rally Amid Whale-Driven Momentum
With the market showing signs of recovery and notable whale-buying activity, LINK Price Prediction shows the potential for a major reversal in the near future. If the wedge pattern holds true, the Chainlink price could be 24.6% to hit the overhead trendline at around $16.34.
Furthermore, the covering trendline of the wedge indicates the sellers could gradually lose their momentum resulting in an upside breakout from the downsloping trendline. The potential breakout will accelerate the bullish momentum and bolster buyers to target a rally above $25.
However, if the overhead trendline holds, the Chainlink price analysis could indicate an extended correction trend lasting weeks or even months.
Technical Indicator:
- BB Indicator: A downward trend in Bollinger Band indicates the sellers have not thrown the towel yet which could extend the ongoing consolidation for a while.
- RSI: The daily Relative Strength Index rise above 45% indicates the market sentiment entered a neutral territory.
Frequently Asked Questions (FAQs)
1. What is the 200W EMA?
2. What is an overhead trendline in technical analysis?
3. What does market consolidation mean in financial markets?
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