- Chainlink surged from $13.18 to $15.25 within 24 hours, with trading volume rising to 120 million LINK.
- Whale wallets now hold 18.15% of LINK’s supply, valued at $2.93 billion, driving accumulation trends.
- LINK/USDT trading volume jumped 40% to $1.8 billion, signaling a potential trend shift amid market uncertainty.
Chainlink (LINK) has staged a notable rebound, outpacing other altcoins following a sharp market-wide downturn. The asset plunged to $13.18 on Tuesday but swiftly recovered to $15.25, signaling renewed investor confidence. This recovery comes alongside increased trading volume and heightened volatility, making LINK a key asset to monitor in the current market conditions.
On-chain analytics firm Santiment has highlighted significant whale activity as a crucial factor in LINK’s recent price movement. The top five Chainlink wallets have continued their accumulation trend, now holding a combined 18.15% of the token’s entire supply, valued at approximately $2.93 billion.
Chainlink’s Notable Rebound Amid Market Downturn
On March 5, 2025, Chainlink rebounded from $13.18 to $15.25 within 24 hours, despite a broader market slump and currently trading at $15.029. Trading volume surged to 120 million LINK, up from an average of 80 million. The volatility index also spiked to 65% from 45%, reflecting heightened market activity and increased investor interest.
Chainlink’s price action has created opportunities and risks for traders. The LINK/USDT trading volume surged 40% to $1.8 billion, hinting at a potential trend reversal. Similarly, the LINK/ETH pair saw a 10% increase in trading volume, indicating renewed demand. However, sustained upward movement remains uncertain.
Technical indicators present mixed signals. The Relative Strength Index (RSI) for LINK stood at 60 on March 5, suggesting neutral momentum. Depending on upcoming market catalysts, this leaves room for movement in either direction. If LINK maintains strong trading activity, further gains could follow, though downside risks persist.
Resistance Levels and Potential Price Movements
Chainlink’s correction aligns with broader market weakness, raising concerns of a bearish shift. IntoTheBlock data suggests that LINK may struggle to recover, as its key resistance level sits between $14.93 and $15.36, with 153 million LINK held at a loss. If the price approaches this zone, selling pressure may increase, hindering further recovery.
The daily chart shows LINK trading in a descending channel since January 20. Attempts to establish support at $18.26 and $15.19 failed, reinforcing a bearish outlook. If selling pressure intensifies, LINK could drop to $10.19. However, reclaiming support at $15.029 may enable a rally toward $18.26 and $25.
Technical analysis highlights key trends for LINK. On March 5, the moving average convergence divergence (MACD) signaled a bullish crossover, hinting at upward momentum. The 50-day moving average stood at $14.50, while the 200-day moving average was $13.80, indicating a bullish position.
Bollinger Bands widened, reflecting increased volatility, while the Network Value to Transactions (NVT) ratio dropped from 40 to 35, suggesting a more balanced valuation. These indicators suggest the potential for recovery, but a sustained uptrend depends on broader market sentiment and resistance breakout success.
Read More: Chainlink’s (LINK) Massive 10% Drop Despite Record Whale Activity
