Chainlink Price Analysis: During the June market correction, the Chainlink price experienced a sharp decline, suffering a 26% loss over the month. However, as supply pressures subsided over this weekend, buyers succeeded in maintaining support above the $12.2 level, which has been a critical floor since November 2023. This level is now viewed as a key turning point for a potential reversal from the recent significant drop.
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Chainlink Price Analysis: Whales Build Positions with $86.7 Million in LINK
As the market witnesses a massive crash over the weekdays, a fresh recovery hits over the weekend. With a similar trend, the LINK price sustains above the $12.59 support level with a lower price rejection on Friday.
This completes a morning star pattern with the 7.28% bullish engulfing candle. In the larger trend, the ongoing correction phase marks a negative cycle within a triangle pattern.
As the buyers abruptly halt the negative cycle before reaching the support trendline, a bullish reversal is likely to start.
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Recent on-chain data reveals a significant accumulation of Chainlink (LINK) by whales and institutional investors. A total of 90 fresh wallets have withdrawn approximately 6.72 million LINK, valued at $86.7 million, from Binance recently.
It seems that whales/institutions are accumulating $LINK!
We noticed that 54 fresh wallets withdrew 2.08M $LINK($30.28M) from #Binance in the past 7 days.https://t.co/SkqA1r0F1N pic.twitter.com/VkPt0kwPb4
— Lookonchain (@lookonchain) July 2, 2024
Additionally, another set of data from Lookonchain reveals that 54 fresh wallets withdrew 2.08 million LINK, valued at $30.28 million, from Binance around late May to Early June. The continuous accumulation of LINK by large wallets underscores the growing confidence and interest in Chainlink’s long-term potential.
The anticipated bull cycle can test the overhead declining trendline that has caused two bearish reversals within the triangle. Further, it could reclaim the $15 psychological mark.
Currently, altcoin trades at $12.919 with an intraday drop of 1.98%. This undermines the bullish recovery but the action sustains above the critical level of $12.58.
With the breakout rally, the LINK price could hit the $20 mark in the coming weeks. However, the broader market movements will be crucial in deciding the fate.
Will the Market Crash Drop LINK Under $10?
Despite the lower price rejection bolstering bull cycle likelihood, a bearish pattern looms over the daily chart. With a neckline at $12.58, the altcoin reveals a head and shoulder pattern.
A drop-down under this neckline will put additional stress over the ascending support trend line. This increases the breakdown chances and could result in an end-of-recovery phase. A breakdown rally could hit the bottom support level at $9.46.
Technical Indicator:
- BB: The LINK price challenging the lower boundary of Bollinger Band indicator suggests the sellers remain active towards LINK coin.
- MACD: The sideways trend in the MACD and signal lines are indecisive as the price halts a crossroads.
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Frequently Asked Questions (FAQs)
A bullish engulfing candle is a candlestick pattern where a large green candle completely engulfs the body of a smaller red candle from the previous trading session.
A bearish reversal is a change in the direction of the price trend from upward to downward.
Whale activity, which involves large volume transactions by single entities or groups, can significantly influence cryptocurrency prices due to the substantial amount of coins moved.
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