Chainlink: Will a $22 Million Whale Purchase Propel LINK Above $14?

Chainlink (LINK) has faced resistance around the $14.9 mark, leading to a recent decline in its price. Despite this setback, significant whale accumulation presents a potential buying opportunity. This article explores whale activity, retail selling trends, and the resistance levels that LINK needs to overcome.

Key Takeaways

Chainlink is currently trading at $13.63, down 4.15% from its recent peak.
A whale purchased 1.62 million LINK, valued at $22 million, contributing to increased accumulation.
While whales are buying, retail investors are selling, creating downward pressure on LINK’s price.
The price resistance stands at $14, with a potential for upward movement if whale accumulation continues.

Chainlink: Can $22mln Whale Purchase Boost Link to Clear $14 Resistance?

Analyzing the Current Situation of Chainlink

After an unsuccessful attempt to break through the $14.9 barrier, Chainlink (LINK) has experienced a pullback, currently trading at $13.63, reflecting a 4.15% decrease in its daily price. This retreat has created a buying opportunity, particularly for large investors known as "whales."

Whale Accumulation of LINK

Since early November, LINK has seen a significant amount of whale-related transactions. Data from CryptoQuant reveals that there have been Large Whale Orders for 28 consecutive days. This sustained activity suggests increased market participation, primarily through accumulation.

Chainlink Spot Average Order Size

According to Onchain Lens, a specific whale recently acquired 1.62 million LINK for $22.01 million from exchanges like Binance and Kraken. Just two days earlier, this whale purchased another 557.94K LINK for $8.03 million, bringing their total holdings to 2.18 million LINK tokens. Generally, such accumulation can indicate confidence among large investors who anticipate future gains.

In alignment with this trend, exchange activities have echoed increased accumulation. CryptoQuant reports a drop in Exchange Netflow to -151k tokens, indicating more withdrawals than deposits.

Chainlink Exchange Netflow (Total) - All Exchanges

A negative Netflow points to rising accumulation, further adding to the narrative of bullish sentiment among whales.

Why is LINK Struggling?

Despite the positive whale activity, retail investors have been using the recent price increase as an opportunity to take profits. When LINK peaked at $14.9, many retail traders started cashing out. Coinalyze data shows that, during this period, Chainlink experienced a negative Buy Sell Delta for three consecutive days.

link_buy_vs_sell_volume_spot

Retail sellers sold 8.1 million in volume compared to a buy volume of 7.32 million, resulting in a Buy Sell Delta of -0.78 million. This indicates considerable selling activity from retail investors, which has contributed to the downward pressure on LINK's price.

Will Whales Help BREAK Resistance at $14?

While whale accumulation has persisted, it has not been enough to counterbalance the selling pressure from retail traders. As a result, Chainlink's market is under continued pressure, with its Stochastic RSI recently showing a bearish crossover at 74.

Moreover, the Directional Movement Index (DMI) indicates that the positive index remains below the negative index, hovering around 19.

LINK Stoch & DMI

These momentum indicators suggest that sellers are still in control, putting Chainlink in a precarious position with potential for further losses. Should retail investors continue to sell, LINK could see support levels around $12.7. Conversely, if whale accumulation intensifies enough to overshadow sellers, there is potential for the price to break $14, reclaim $15, and aim for $16.7.

Final Thoughts

Chainlink's current dynamics reflect a tug-of-war between accumulating whales and selling retail investors. The outcome of this struggle will be crucial in determining the altcoin's price trajectory in the near term.

As the market continues to evolve, all eyes will be on how both investor segments react and whether whales can help propel LINK through its resistance levels.