Chainlink (LINK) has recently established support close to $16.91 after a largely bearish performance in the past week.
Chainlink (LINK) has recently found support close to $16.91 after a largely bearish performance in the past week. The cryptocurrency declined by more than 15% and is trading around this descending trend line, which has acted as a key support level in the past. If the price manages to hold at this level, it could suggest a further recovery for Chainlink.
Technical analysis of the on-chain data also provides insights into the future direction for the long-term trend of the LINK/USD pair. This analysis reveals a notable trend that has fueled optimism for the cryptocurrency. A large number of whales have emerged, boosting this positive outlook. According to Santiment's Supply Distribution data, the average stake holders who own wallet with between 100,000 and 10,000,000 LINK tokens have gradually increased their stakes over time.
Wallets holding between 100,000 to 1 million LINK tokens increased from 155.31 million to 159.53 million as per the data. Consequentl, the number of wallets with a holding of 10m to 100m LINK also grew up from 479m to 480.78m.
These spikes in whale activity indicate that large investors in Chainlink are optimistic about the current low prices and are engaging in buying the digital asset. However, some whales that possessed between 1 million and 10 million LINK tokens sold their tokens in the same time span. This movement gives a signal that despite the whales that may be selling the coin, there are others that are scooping up the LINK token at lower prices and thus propelling its recovery.
As the crypto market trends downwards, LINK has remained to be a network with key stakers that are accumulating tokens at lower prices. Chainlink has recorded 1,659 daily transactions which have been above the $100,000 mark, which is the highest recorded since 2023. Moreover, it involved 9,531 active wallets in interaction with the network which has been the liveliest 4-weeks testing period in recent time.
Chainlink (LINK) price now is situated near to $19.88 as it has tested $16.91 as its key support area. The price level is also significantly close to the 50-day Exponential Moving Average at $18.88 and hence a good support area for Chainlink. If this trend line will remain intact, it is very possible that the cryptocurrency will surge to its earlier high of $31.20 in December of the year 2024.
However, even if the overall mood is optimistic, traders should be cautious. The relative strength index for LINK is currently 52, indicating a neutral market state. On the shorter time frame, the MACD is signaling a bearish crossover, which could indicate a short-term downturn. It is important for the traders to pay attention to these indicators to gauge whether this bounce can be sustained or not.
Chainlink is in a bullish zone with an outlook in the short-term due to the buy signs from the whales, heightened network interaction, and some underlying fundamental factors. However, short term investors should be aware of the short term pullbacks.
