The price of Chainlink (LINK) has recently become the market focus. In just five days, 30 newly created wallets withdrew 1.37 million LINK from Binance, worth up to $34.1 million. This accumulation has led investors to focus on LINK's future trends, especially whether it can break through key resistance levels.
As of the time of writing, LINK's price has risen by 4.01% to $24.93. With significant whale activity, market sentiment is becoming increasingly complex: will LINK break upward, or will it consolidate within the current range?
Whale activity and on-chain accumulation
According to observations by on-chain data analysis company Lookonchain, the targets of these large-scale fund flows are very clear: to concentrate and accumulate LINK. Such whale behavior is often seen as a precursor to potential price increases.
The amount withdrawn by 30 wallets from Binance approached $34.1 million in five days, indicating that whales are positioning themselves for future market volatility. Combined with the current market environment, this activity may foreshadow an important price breakout for LINK.
Breakthrough resistance or continued consolidation?
From a technical perspective, LINK's price is currently facing strong resistance around $26.14, while $22.04 provides solid support. The MACD indicator shows bearish momentum, but the ADX reading of 28.99 indicates that the trend has some strength.
If LINK can break through the resistance at $26.14, then the target of $30 will become the next key level. This not only presents an opportunity for bullish investors but may also attract more market capital. However, if it fails to hold the support level, the price may further enter a consolidation phase, delaying any large-scale upward movement.
Divergence between whales and retail investors
Despite the positive signals from whale activity, retail participation seems to be declining. In the past week, the number of new addresses and active wallets on the Chainlink network decreased by 25.06% and 23.94% respectively. The reduction in the number of zero-balance addresses (down 31.97%) further indicates a waning enthusiasm among retail investors.
In contrast, the concentrated accumulation behavior of whales showcases another side of the market: despite retail investors being temporarily quiet, large holders of capital are preparing for potential future increases. This divergence may suggest that the market is in the early stages of strategic accumulation.
The decline in foreign exchange reserves coincides with an increase in trading volume—a bullish environment is gradually taking shape.
According to data from CryptoQuant, LINK's daily trading volume increased by 1.05% to 11,466 transactions. The increase in trading activity indicates a rising level of attention on LINK, which may be closely related to recent whale activity.
Additionally, exchange reserves have slightly decreased by 0.06% to 172.5 million LINK. This change reflects a reduction in the selling supply circulating in the market, and in a stable demand environment, this supply tightness may provide positive support for prices.
Is a breakout for LINK imminent?
Combining on-chain data and technical analysis, LINK's price trend is at a critical juncture. The large-scale accumulation by whales, the decline in foreign exchange reserves, and the increase in trading activity together create a bullish environment. If LINK can successfully break through the resistance at $26.14, the target of $30 will be within reach. This presents not only an opportunity for investors but may also become a turning point in market sentiment.
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