Chainlink (LINK) price has increased by more than 8% over the past 24 hours, with trading volume surging 106% to $1.04 billion.
Despite the sharp price growth, Chainlink whale activity has stabilized, as the number of addresses holding between 100,000 and 1,000,000 LINK remained steady at 527, after peaking at 534 earlier.
LINK Whales Stay Neutral
The number of addresses holding between 100,000 and 1,000,000 LINK increased significantly from 510 on December 18 to a monthly high of 534 on December 27. This increase indicates a strong accumulation phase, reflecting increased interest from large investors at that time.
Monitoring the behavior of whales is crucial, as their buying or selling activities can greatly impact price trends. Accumulation by whales is often a signal of confidence in the asset and can drive prices higher as large trades create upward momentum.
Number of LINK whale addresses | Source: Santiment
However, after peaking at 534 addresses, this number has slightly decreased and is currently stable at 527. The recent stability indicates that large investors are neither accumulating further nor selling off much, reflecting a neutral sentiment.
Although LINK's price has increased by 8% in the past 24 hours, the lack of continued accumulation from whales could be a warning sign regarding the sustainability of the recent price increase. For LINK to maintain its upward momentum, greater interest and more active participation from large investors will be necessary for additional support.
Chainlink's RSI indicates the potential for recovery
The Relative Strength Index (RSI) of Chainlink has surged sharply, from 36.9 to 64.3 in just one day. This spike reflects a significant shift in momentum, driven by strong buying pressure following the recent price increase.
RSI, a popular momentum indicator, measures the speed and intensity of price fluctuations on a scale from 0 to 100, providing deeper insight into whether an asset is overbought or oversold. A reading above 70 indicates overbought conditions, often predicting a downward correction, while a reading below 30 suggests that the asset is oversold and may rebound.
LINK's RSI | Source: TradingView
With a level of 64.3, Chainlink's RSI is approaching the overbought territory, indicating that buying pressure remains strong but the asset is nearing a significant threshold where upward momentum may face resistance. In the short term, this RSI level suggests LINK still has some room for moderate growth, but traders should watch for signs of weakness as the index approaches 70.
If buying pressure continues, the RSI could enter the overbought territory, signaling a potential correction or pause before continuing to rise. Conversely, if the RSI stabilizes or declines, that could indicate weakening momentum.
LINK Price Prediction: Can it reach $30 in January?
Chainlink's EMA lines are signaling the potential formation of a 'golden cross' in the near future. A golden cross is a bullish indicator that occurs when a short-term EMA crosses above a long-term EMA.
If this golden cross appears and the current bullish trend continues, LINK's price could see strong upward momentum. The price may test the resistance level at $25.99, and if surpassed, it will pave the way for further gains. Targets at $27.46 and even $30.94 could mark significant growth for the asset.
LINK/USDT 4-hour chart | Source: TradingView
However, recent activity of the whales and high RSI levels suggest that the current bullish trend may not be sustainable, leaving the possibility of a correction open.
If the bullish trend starts to slow down and selling pressure increases, the price of LINK may face a correction, testing the nearest support level at $21.32. If this level fails to hold, the price could drop further to $20.02, signaling a significant pullback.
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