As the momentum in altcoins appears to be gathering amid Bitcoin’s break above $105K, whales have recently been hovering around Chainlink price.
According to a transaction tracked on the blockchain, a whale took out 429,999 Chainlink (LINK) tokens. It was equivalent to about $12.55 million, and 1,600 Ethereum (ETH), worth roughly $6.3 million, from exchanges.
Altcoin’s Showing Recovery Signs
As Bitcoin surpassed $105,000, analysts are noting signs of recovery in altcoins. Chainlink price in particular has jumped by over 5% in the last 24 hours ahead of Bitcoin’s pump.
Charts from crypto analyst Crypto Rover highlight some patterns that could influence what altcoin investors should be taking into consideration.
His charts mark out a peak in BTC dominance called ‘TOP,’ where the market share of Bitcoin tops out. A red circle marks this peak. The most famous of these formations is the top formation. It is known to be the point at which Bitcoin’s price or dominance might start to drop, given it is the top formation.
It makes it less favorable than altcoins. There’s a big drop in BTC dominance following the top. An immediate steep drop after the peak is visually represented. This steep fall may signal that investors are reallocating their resources from Bitcoin into other altcoins lowering the BTC’s proportion of the market power. Usually, both of these tend to rise simultaneously in the altcoin markets.
What Next for Chainlink Price?
Looking at an in-depth analysis, we see that LINK saw its price fluctuate, as we can see in the chart, with a huge spike in early December. It reached a high of around $30.85. Chainlink price has since been in consolidation mode within a known resistance zone shown in pink ($30 to $30.34).
We see the pink box indicating a resistance zone, the price has failed to break out higher on multiple occasions and has bounced off this range. This zone seems to have its upper boundary as a strong resistance level that the price has tested but hasn’t convincingly broken above.
However, the Money Flow Index (MFI) of 46.32 is in a neutral market sentiment. A reading above the MFI of 50 means the buying and selling pressures prices are in equilibrium.
Green most recent candles indicate some buying interest at the current levels. The price however has now entered the resistance zone but still hasn’t broken it to the upside, which means there is price uncertainty in further moving upwards.
With a sign of a bullish trend on MFI and if LINK manages to break through the resistance zone with a good volume, this might be a strong buying opportunity and prices can be higher.
A strong resistance could be broken, otherwise, if the price fails below the $28 support level it means a bearish trend in which the price shall fall to lower supports.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
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