Chainlink Price: Whale Buying Spree Hints At 15% Surge, But There’s A Catch

Over the past week, the altcoin market has shown signs of forming a local bottom as the supply pressure from the Bitcoin correction has decreased. With renewed buying interest, the Chainlink price rebounded by 16.2% from a multi-month support zone at $12.63, reaching $14.678. This surge suggests that the LINK coin could sustain above the 38.2% Fibonacci retracement level— a healthy correction level for buyers to counterattack.

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Chainlink Price Rebounds Amid Whale Accumulation and Top-Tier Development Activity

During the June correction, the Chainlink coin experienced significant outflows, with its price plummeting from $19.2 to $12.6, resulting in a 34.2% decline. The $12.6 low accompanied by a 32.8% FIB level and 100W EMA creates a high area of interest (AOI) for buyers. 

In the last six months, the LINK price rebounded support times from the aforementioned support indicating the buyers are aggressively defending this level to prevent prolonged correction. The recent reversal from bottom support has propelled the LINK price to $14.5, while the marketcap jumped to $8.85 Billion.

Recent on-chain data analysis from Lookonchain reveals that whales and institutions are accumulating Chainlink (LINK). Over the past seven days, 54 fresh wallets have withdrawn a total of 2.08 million LINK, valued at approximately $30.28 million, from Binance.

https://twitter.com/lookonchain/status/1808040911764705395?ref_src=twsrc%5Etfw” rel=”nofollow

The significant withdrawals, with the largest being 139,111 LINK ($2.03 million) from a single address, suggest strategic positioning by major investors in anticipation of bullish market movements.

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In addition, the recent data from Santiment reveals that Chainlink (LINK) has rapidly ascended to the #2 position in cryptocurrency development activity, just behind Hedera. This ranking is based on the frequency of notable development activities over the past 30 days, with Chainlink achieving a development activity score of 526.1. 

This surge in development activity highlights Chainlink’s growing prominence and continued innovation within the crypto space.

With an intraday gain of 2%, the Chainlink price teases a bullish breakout from $14.6 resistance. A daily candle closing above this barrier will uplift the asset another 16% and challenge the downsloping trendline at $17.

The descending trendline represents the primary resistance in the ongoing correction, and breaking above it is essential for the continuation of the uptrend. 

Conversely, the support trendline on the daily chart, which has been in place since June 2023, underpins the current recovery. Buyers must maintain this level to carry a prolonged bull run.

Technical Indicator:

• EMAs: The LINK price trading below the daily exponential moving average (20, 50, 100, and 200) indicates that sellers are primarily driving the current market movement.
• RSI: A notable higher low formation in the daily relative strength index (RSI) slope as the price rebounds from $12.6 accentuates the rising buying pressure at the bottom.

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