Chainlink (LINK) Is Trading at a Critical Level as Market Data Points to Heightened Volatility and Investor Activity.

The token, now priced at $12.76, has dropped 7.28% in the last 24 hours.

Chainlink (LINK) is trading at a critical juncture as market data points to heightened volatility and increased activity from major investors.

The token’s price has dropped 7.28% in the last 24 hours and is currently trading at $12.76.

Source: CoinMarketCap

However, technical indicators and whale accumulation suggest the possibility of a significant move in either direction.

One major investor recently bought nearly 140,000 LINK for $2 million at $14.30.

Meanwhile, LINK is forming a symmetrical triangle and a descending wedge pattern—formations that are typically associated with breakouts.

If the price manages to clear the resistance at $15.68, traders could see a 35% rally to reach $18.18.

Afterward, the next major resistance level lies around $20.

If LINK fails to hold the support at $12.57, then it could drop toward $11.50.

Here’s a closer look at the latest market activity and technical analysis.

LINK whale activity and key levels to watch

A large holder has massively increased their LINK holdings, acquiring 139,860 tokens at an average price of $14.30.

This addition brings their total LINK stash to 147,553.

Earlier today, another investor booked a profit of $161,000 from earlier LINK trades, suggesting a pattern of well-timed entries and exits.

These high-volume transactions often signal market optimism and could precede a LINK price rally.

Currently, LINK is encountering resistance at the whale’s entry level of $14.30, and $15.68 remains a key level for bulls to watch.

A break above this zone could trigger a 35% rise, reaching a price target of $18.18.

On the downside, if LINK fails to hold the support at $12.57, then it could drop toward $11.50.

This support level was previously breached in March 2023, leading to a 66% decline in LINK’s price.

Chart setup: Symmetrical triangle and volatility

LINK’s price structure is compressing within a symmetrical triangle and a descending wedge, also known as a megaphone pattern.

This setup usually precedes large price moves, with increased volatility and the potential for breakouts in either direction.

At current levels, LINK is trading in a very narrow range, which is often followed by high-impact swings.

If the price manages to break above the $15.68 zone, traders could quickly see a move toward the $18.00 mark.

This rally would likely be fueled by short-covering and retail buying activity.

On the flip side, a candlestick close below the $12.57 support would negate the bullish structure and could open the door for further price declines.

On-chain metrics show accumulation and liquidity

The MVRV Z-score—a key metric used to identify overbought or undervalued conditions—stands at 3.09 for LINK.

Historically, Z-scores ranging from 2 to 3 have been observed to precede major LINK rallies.

For instance, LINK experienced a surge of over 120% in early 2023 following a similar Z-score reading.

Furthermore, daily active addresses have risen to 921, rebounding from the lows reached in March.

This increase in activity could support long-term price growth.

Additionally, exchange reserves have dropped by 3.11% to reach $2.15 billion.

This reduction in available tokens on exchanges could indicate strong holding behavior among investors.

Growing liquidity and whale confidence

The recent LINK purchase by a major investor, amounting to nearly 140,000 tokens at an average price of $14.30, aligns with positive on-chain indicators.

These indicators include a decreasing MVRV Z-score, reduced exchange reserves, and increasing daily active addresses.

Together, these factors suggest a bullish setup despite the technical resistance and volatile price action.

If LINK manages to cross the $15.68 resistance, it could experience a rally to reach $18.18.

The next major resistance level would then be encountered around $20.

External factors such as Bitcoin ETF flows and US monetary policy may influence the pace of any rally.

Should LINK fall below the $12.57 support level, panic selling could follow. However, the support provided by large holders could help to stabilize the market.