One of the large Chainlink whales has transferred a large number of tokens from Binance, which may cause a change in market trends. The wallet transferred 171,120 tokens, valued at $2.36 million. Such massive transactions tend to attract much attention due to possible long-term holding or preparation for holding the tokens privately or trading.
Source: X
After the withdrawal, the whale now holds 789,810 tokens, which were valued at $10.89 million at the time of the withdrawal. It is also pointed out by some on-chain experts that some withdrawal actions of the whale could be anticipated by market movements because the whale’s actions could be an indication of the change in the market’s sentiment.
Also Read: Chainlink Gains Momentum: Can LINK Break Key $14.63 Resistance Soon?
LINK Eyes Bullish Breakout With $28 in Sight
However, the crypto analyst, CryptoWZRD, highlighted that the token ended the trading day on an optimistic note and is now trading at $13.78. There are expectations that the token may move higher, and one such factor that could trigger that trend could be a decline in the dominance level of Bitcoin, BTC.D. Traders are waiting for intraday patterns to form for scalp trading opportunities tomorrow.
Source: X
The levels to focus on are $16 for the short term, $20 for the mid-term level, and $28 for the long-term level. But if the pressure continues and the token manages to move above these levels, it will show signs that the token may be making a strong comeback. The traders are advised to focus on the levels that will be identified to see whether the trend will continue or face an immediate correction.
Technicals Suggest Recovery as RSI Hovers Above 50
Chainlink is displaying a small-scale bounce on the daily charts but is still classified as corrective. The price has broken above both the 20 EMA and the 50 EMA but remains below the 100 EMA and the 200 EMA. The bearish alignment of the EMA indicators suggests that this is just a corrective bounce.
Source: TradingView
Momentum indicators are supportive for the recovery but do not have strong confirmations. RSI levels above 50 show that there has been an overall positive change without reaching the overbought region. The levels of key support are around the region of 13.50-13.60, near the 50 EMA, and resistance levels are at 15.00 and 16.20.
Also Read: LINK Price Forecast: Will Chainlink Surge Toward $15 in January?
