Chainlink price is currently under short-term selling pressure at around $11.35, although it seems that big players are buying LINK amid the pullback.
Table of Contents
At the time of writing, LINK is trading at $11.33, with a 24-hour trading volume of $250.87 million and a market capitalization of $8.49 billion. LINK has declined 1.82% over the last 24 hours.
Whales Accumulate LINK During Market Pullback
The most recent weakness has come after a more pronounced pullback from $13.68 to $11.29. As noted by crypto analyst Ali Martinez, the whales have been accumulating approximately 10.36 million LINK over the last 96 hours, which would amount to about $120 million in value currently.
The movement of the whales is crucial since it occurred at a time when the Chainlink price was falling by almost 17% from its previous high. The whales did not decrease their holdings but increased them instead.
This is indicative of a scenario where the whales might be interested in buying LINK at these prices. This is, however, not always sufficient for LINK to bounce back. It should first attain certain key technical levels for the bull thesis to prevail.
This hoarding is occurring while Chainlink continues to be an integral part of the blockchain infrastructure landscape. Chainlink’s oracle network gives access to data from outside the blockchain for applications built on blockchain and has become intimately associated with innovations in the areas of DeFi and tokenization.
In addition to this, any change in the demand for LINK may generate interest that extends beyond just the price of the coin. Greater whale holdings will mean that less LINK is available for selling.
Also Read | Solana Price Targets $147 Breakout as Network Activity Hits New Highs
Chainlink Price Faces Downside Pressure
The Bollinger Bands of Chainlink reveal that the price is at $11.3300 below the middle band at $11.71060, meaning that momentum is weak for now. The upper band is at $12.79675, while the lower band is at $10.62445. In case the price moves above the middle band, recovery may be achieved; however, should the price fall towards the lower band, the selling pressure will grow.
Another factor pointing to the weakening momentum is the MACD, as the MACD line is at 0.39393 and is below the signal line at 0.57096. Besides, the histogram turned negative to -0.17703.
Why the $120 Million Accumulation Matters
It is the amount and the timing of the accumulation that make the occurrence relevant to LINK token holders.
A four-day-long accumulation of 10.36 million LINK is a large-scale buildup of the coin by institutional players. Should they remain in their positions, it will contribute to the price of the coin amid any potential selling pressure.
Nevertheless, one has to be careful about considering whale accumulation as an indicator of price movements. The strategy of large wallets is different, and there is no way to understand when and why they will decide to sell the accumulated coins.
Now the main thing is whether the buying will help the Chainlink price recover.
What Happens Next for LINK Price?
The next big test for LINK is how it will fare against reclaiming the middle Bollinger Band at $11.71. The price moving beyond this resistance zone will help improve its technical structure and create a path toward the $12.80 region.
Another breakout past the upper Bollinger Band will offer further evidence of this recent correction coming to an end.
On the flip side, a lack of bounce from the middle Bollinger Band could set LINK up for another fall back toward $10.62.
At the moment, the situation with Chainlink is in a conflict between two opposite signals: big players are buying up LINK, but technicals still point to decreasing momentum. The development near the Bollinger Bands’ crucial levels will give more hints about further actions.
Chainlink Price Outlook Turns Mixed
The Chainlink price is still being subjected to bearish pressure after its recent drop. However, the accumulation of whales worth $120 million brings in a positive element to the whole scenario.
What needs to be considered right now is whether LINK will manage to recover above the $11.71 level and go up toward the $12.80 range. Otherwise, with negative MACD and trading below the middle line of the Bollinger Band, downside threats haven’t been ruled out yet.
But in case of continued accumulation by whales and recovery of technical levels by LINK, then the pullback may result in a potential rebound setup. Otherwise, the $10.62 level could be the next point of interest for the pair.
Also Read | Ethereum Price Eyes $3,000 Breakout as RWA Market Dominance Strengthens
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
