Chainlink Whales Strike Back Amid Downward Price Volatility

On-chain data provider Santiment explains that Chainlink’s current price is $7.51, representing a remarkable 30% increase over the past 5 weeks. During this period, wallets holding 100,000 to 1,000,000 $LINK have been accumulating aggressively, adding a total of $38.5 million worth of coins in just the past week. These significant accumulations by larger holders carry greater significance than the profit-taking actions of small retail traders.

Conversely, the ratio of on-chain transaction volume indicates that retail investors have been consistently striving to capitalize on favorable market conditions. When the Chainlink price experiences an uptick, they tend to act quickly by moving their coins.

The LINK Price Action

With Chainlink’s price currently at $7.56, it has seen a nearly 2% increase over the past 24 hours, recovering from a 5.3% dip. The coin has found support at the $7.40 level, preventing it from sliding to $7.00, where the 50-day Exponential Moving Average (EMA) is positioned. Maintaining this support is crucial for LINK’s recovery towards $8.01.

As LINK stands just 13% away from its year-to-date high of $8.58, it requires a series of positive candlesticks to achieve this upward momentum. The Relative Strength Index (RSI) lends support to this idea, rebounding from the neutral line at 50.0, indicating the presence of bullish momentum.

This momentum has the potential to propel the price toward $8.01, bringing it closer to the next significant resistance level at $8.38. However, if LINK fails to hold the support line, it could negate the bullish scenario, leading LINK to test the support line at $6.91.