The price of Chainlink (LINK) has increased over 8% in the last 24 hours, with trading volume soaring 106% to reach $1.04 billion.
Despite this strong price increase, whale activity remains stable, with the number of addresses holding between 100K and 1 million LINK maintaining at 527 after peaking at 534.
LINK Whales Maintain Neutral Stance
The number of addresses holding between 100K and 1 million LINK has increased significantly from 510 on December 18 to a monthly high of 534 on December 27. The increase in whale activity highlights a strong accumulation phase, reflecting significant interest from large investors during that time.
Monitoring the behavior of these whales is crucial, as their buying and selling patterns can heavily influence price trends. Whale accumulation is often a sign of confidence in the asset, and it can drive further price increases as their large transactions create upward momentum.
Addresses holding between 100K and 1 million LINK. Source: Santiment
However, after peaking at 534 addresses, this number began to slightly decrease and has stabilized at 527. The recent stability suggests that large investors are neither accumulating nor aggressively selling LINK, indicating a neutral sentiment.
Despite an 8% price increase in the last 24 hours, the continued lack of accumulation from whales may suggest caution regarding the sustainability of the recent price surge. For LINK to maintain an upward trend, fresh interest and increased activity from these large investors is needed to provide additional support.
Chainlink RSI Signals Potential 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 notable shift in momentum, driven by strong buying pressure following the recent price increase.
RSI is a widely used momentum indicator that measures the speed and strength of price movements on a scale from 0 to 100, providing insights into whether an asset is overbought or oversold. A reading above 70 indicates overbought conditions, often suggesting a potential correction, while a reading below 30 indicates oversold conditions and potential recovery.
RSI of LINK. Source: TradingView
With a level of 64.3, the RSI of Chainlink is approaching the overbought territory, indicating that while buying momentum remains strong, the asset is nearing a critical threshold where upward movement may start to face resistance. In the short term, this RSI level suggests that LINK still has room for modest growth, but traders should monitor for signs of exhaustion as it approaches 70.
If buying pressure continues, the RSI could move into overbought territory, signaling a potential temporary consolidation or correction before further price movement. Conversely, a stable or declining RSI may indicate that momentum is starting to weaken.
LINK Price Prediction: Could It Reach $30 In January?
Chainlink's EMA is signaling the potential formation of an upcoming Golden Cross. A Golden Cross is a bullish indicator that occurs when a short-term EMA crosses above a long-term EMA.
If this Golden Cross occurs and the current upward trend continues, the price of LINK could see significant upward momentum. The price may test resistance at $25.99, and if it surpasses this level, it could pave the way for further profits. Targets at $27.46 and potentially $30.94 could mark significant growth for the asset.
LINK Price Analysis. Source: TradingView
Conversely, recent whale activity and high RSI suggest that the current price rally may not be entirely sustainable, leaving room for a potential reversal.
If the upward trend weakens and selling pressure increases, the price of LINK may face a correction, testing support right at $21.32. If this level does not hold, the price could drop further to $20.02, marking a larger correction.