Chainlink (LINK), the decentralized oracle network, has recently captured the attention of large-scale investors, or whales, who have been scooping up the token in massive amounts, resulting in a remarkable surge in its price.
As a result, the price of LINK has surged by more than 15% within the past 24 hours, surpassing the critical resistance level of $8. Nevertheless, certain technical indicators raise concerns that a corrective decline in LINK’s value may be imminent.
One of the most notable whale transactions occurred recently, with an anonymous buyer purchasing 411,142 LINK at an average price of $8.06, totaling 1,757 stETH and approximately $3.3 million in value. This particular whale bought 65,723 LINK using 500,000 USDC at $7.61 per token on July 20.
These significant purchases indicate an optimistic sentiment for LINK. Furthermore, the increased demand for LINK reflects the growing adoption of Chainlink’s oracle services. These services provide reliable and secure data feeds for various smart contract platforms and applications.
Chainlink Price May Face Correction Despite Whale Accumulation
Despite the positive outlook for LINK, traders should be cautious of a possible price reversal in the near term. Technical indicators reveal that LINK’s Relative Strength Index (RSI), which gauges momentum and overbought/oversold conditions, is indicating a double-top pattern.
RephraseThis particular pattern is often seen as bearish, suggesting a potential pullback after reaching its peak. At the same time, whale accumulation can boost LINK’s price, and the presence of a double-top pattern in RSI serves as a warning sign that downward pressure may be imminent.
It’s important for investors to do their own research and consider market volatility, as whale movements may offer insights into potential future price movements.
According to CoinMarketCap, LINK is currently trading at $8.1089703, with a market cap of $4.36B USD. Over the last 24 hours, Chainlink has seen a notable increase of +15.36% with a 24-hour trading volume of $1.55B USD. Additionally, its circulating supply is 538.10M.
Some analysts believe that Chainlink’s strong infrastructure and partnership with the NaturesGold token position it as a cornerstone of the decentralized finance ecosystem. They project a potential increase to $8.36 for Chainlink by the end of 2023.
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