- Chainlink’s LINK surges 18% weekly, driven by whale accumulation and development milestones.
- On-chain data reveals whales adding $77M to LINK holdings, signalling investor interest.
- Technical indicators caution investors as LINK faces potential bearish pressure
The cryptocurrency world is observing a bullish trend in Chainlink’s (LINK) token, with prices rising significantly over the past month. After forming a bullish double-bottom pattern near the $5 mark in late June, the token seems to have attracted the attention of whales.
Consequently, LINK has experienced a notable uptick, trading at $8.04, with an increase of 5.96% in the past 24 hours and an impressive 18.24% gain over the week.
Whale Accumulation Fuels LINK’s Rising Trend
Interestingly, the surge in LINK prices is partly due to a whale-fueled increase in demand. On-chain data indicates that whales have added an estimated $77 million to their LINK holdings over the past month.
?? #Chainlink has jumped ahead of the #altcoin pack Thursday. And prices appear to be powered by heavy whale accumulation, with the highest amount of transactions valued at $1M+ this year. Wallets holding 100K-10M $LINK are accumulating rapidly as well. https://t.co/U1vV7JmyNJ pic.twitter.com/gkIm6lhMie
— Santiment (@santimentfeed) July 27, 2023
According to the data shared by cryptoanalyst “Ali”, this accumulation is around 11 million LINK. Significantly, these acquisitions came on the heels of a 40% drop in LINK between April 19 and June 19. However, since June 20, LINK has steadily climbed the growth ladder.
Chainlink has also seen a leap in development, enhancing its allure for potential investors. One notable development is the introduction of the Cross-Chain Interoperability Protocol (CCIP) on the mainnet.
This new protocol allows developers to build cross-chain apps and services, effectively bolstering Chainlink’s ecosystem. Additionally, CCIP, backed by Chainlink’s decentralized oracle networks, offers robust security against flash-loan attacks and other common vulnerabilities.
Market Responds to Whale Accumulation
Despite resistance at the day’s high of $8.08, the LINK market witnessed an overall bullish momentum in the last 24 hours. Even though bears managed to dip prices slightly, a solid support level was established at $7.84. As of press time, LINK stood at $7.87, showing a minimal decline of 1.20% from its previous close.
Moreover, the 24-hour trading volume experienced a 26.40% dip, putting it at $299,065,871. The market capitalization, mirroring the price change, also dipped by 1.20% to $4,234,906,651.
However, the promising trend is in the heavy accumulation by whales, which included the highest number of transactions valued at $1M+ this year. Wallets holding between 100K-10M LINK are also rapidly expanding.
In-Depth LINKUSD Technical Analysis
Despite the recent resurgence, technical indicators recommend caution to investors. The Relative Strength Index (RSI) registers 54.72 on the LINK 4-hour chart, pointing downwards. This motion suggests a decrease in buying pressure, often preceding a price dip. Investors should monitor the RSI closely, as a further decrease may indicate a continuation of the bearish trend.
Similarly, the Stochastic RSI (Stoch RSI) stands at 60.14 and points southward. The stochastic RSI’s current level and direction often anticipate future price movements. A downward movement in the Stochastic RSI suggests that the price may continue to decline in the near term. Traders and investors may interpret this as a potential selling opportunity or a signal to exit long positions.
Moreover, the Chaikin Money Flow (CMF) shows a reading of 0.03. A falling CMF often indicates selling pressure, signalling a potential reversal or slowdown in the current trend. If the CMF crosses into the negative region, it could indicate an increased selling pressure, adding to the bearish sentiment.
In conclusion, the steady rise of Chainlink’s LINK, largely fueled by whale accumulation, is a development to watch. With significant advancements in its framework, Chainlink continues to entice potential investors in the crypto market.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.