In recent days, the altcoin market has witnessed a significant depreciation, erasing most of the gains achieved at the beginning of the ‘Uptober’ trend. As LINK encounters substantial selling pressure near its resistance levels, long-term investors have shifted into accumulation mode, purchasing LINK at a reduced price. This strategy could increase LINK’s potential for future upward movement by strengthening its immediate support level.
Large Transaction Volume Surpasses $100 Million
As the price of LINK continuously declines, whales are on the hunt to acquire a substantial portion of the altcoin. LINK has previously shown its bullish potential, and analysts anticipate that the ongoing decline may be temporary, given that the support line continues to strengthen daily.
Interestingly, an institution that has amassed $4.2 million in LINK this week utilized 81 wallets. These wallets were created on September 15 and saw withdrawals from Binance three days later. Since that time, they have accumulated a total of $56 million in LINK. Additionally, six long-term holders have collectively acquired $2.4 million in Chainlink from Binance. Each of these accounts maintains over $800,000 in LINK and has not engaged in trading any altcoins other than LINK.
Data from IntoTheBlock unveils a significant increase in large transaction volume starting from October 7. The metric surged from a low of $14.6 million to a peak of $103 million on October 10 and is presently stabilizing around $99 million, indicating recent substantial whale activity in the LINK price.
This could indicate two scenarios: Wales might be liquidating their LINK holdings to secure profits amidst a declining price, thereby creating additional downward pressure on its value. Also, they might be accumulating LINK close to its dip, anticipating a robust upward trend.
What’s Next For LINK Price?
After attempting to surge above $7.5 recently, LINK price faced bearish pressure and dropped below the EMA20 trend line, indicating a potential shift in control towards the bears. Currently, sellers are aiming for a further downturn. As of writing, LINK price trades at $7.2, declining nearly 2% from yesterday’s rate.
The subsequent support level to monitor is the 200-day exponential moving average (EMA), which stands at $7.2. A breach of this level could signal a rush of traders exiting their positions, potentially causing the LINK price to drop to $6.6 and possibly further down to retest the $5.7 support.
Should the price bounce back from $6.6 or EMA200, the bulls might gain confidence to drive the price beyond $7.7. A successful move will drive the price to test the resistance at $8.3.
The declining 20-day EMA and the relative strength index (RSI) heading toward the oversold region suggest an advantage for a short-term downward correction.
Credit: Source link