Dec 13, 2024
6thTrade
Chainlink (LINK) has witnessed a significant upswing, soaring over 20% in the past 24 hours and achieving its highest price levels in three years. This surge has propelled LINK to approximately $28, effortlessly breaking through critical resistance levels and indicating a resurgence of bullish momentum.
Stable Whale Activity Amidst Price Surge:
Interestingly, despite this sharp increase in price, the level of whale accumulation has not changed substantially. The number of wallets holding between 100,000 and 1,000,000 LINK remains almost constant at 524, compared to 525 a week ago. This stability in whale numbers follows a decline from November 19, when there were 558 such wallets. This pattern of whale activity is crucial as it often precedes significant market movements. The lack of new whale entries might suggest a cautious or consolidating phase among large holders, following a period of reduced confidence or profit-taking.
Technical Indicators and Market Sentiments:
The Relative Strength Index (RSI) for Chainlink, currently at 66, has shown a significant recovery from a low of 32 on December 9, reflecting strong recent buying momentum. However, the RSI has struggled to stay above the 70 threshold, a level that often indicates an asset is overbought and could face potential selling pressure. This inability to maintain a higher RSI may signal that the current price surge could be losing steam, potentially leading to a short-term consolidation or a slight pullback.
Future Price Movements and Predictions:
As for its future trajectory, LINK is currently trading close to the critical $28 mark. If it can sustain this momentum, the next major resistance is at $29, with an eye toward reaching the $30 mark—a level not seen since November 2021. Successfully breaking past these points could set Chainlink on a path toward $35.
Conversely, if the uptrend falters, Chainlink could find strong support at around $26.9. Failing to hold this level might see the price drop further to secondary support levels at $22.4 or even $19, which would represent a significant retracement from its recent highs.
Overall, the recent price action in Chainlink coupled with stable whale activity and challenging RSI readings presents a mixed signal, leaving the future price direction somewhat uncertain. Traders should keep an eye on these indicators and market sentiments to gauge the next moves for LINK in this dynamic market environment.