We are off to a great start for crypto this week. As Bitcoin and Ethereum are now above $62k and $3.3k, the overall sentiment in the market is positive.
One of the altcoins that’s “waking up” is Chainlink’s LINK with a 5% pump today. The LINK price is now close to $14.
However, that’s not the biggest news when it comes to Chainlink.
What you'll learn 👉
Whale/Institution Goes on a Massive Buying Spree
LookOnChain reported yesterday that a mysterious whale or institution accumulated 12.75 million LINK, which is equivalent to $167 million.
They did this with 93 different wallets in the last 3 weeks as they withdrew all of these funds from Binance.
Whale accumulation of this magnitude is important for Chainlink holders and potential investors. It demonstrates strong belief in the project’s potential and could be a sign of bigger price movements on the horizon.
When large players make such substantial investments, it often indicates confidence in the asset’s future value and utility. This accumulation might also reduce the available supply in the market, potentially leading to increased demand and price appreciation.
Read also: Here’s Why Internet Computer (ICP) Price is Pumping
LINK Price Forecast and Analysis
I took a look at the LINK/USD price chart. There’s not much different to see there compared to most top altcoins right now; the price is in a downtrend as it’s trading well below its yearly high of around $20. This price was hit in March.
Precisely, LINK has been trading in a descending triangle pattern, as marked with purple lines on the chart below:
One worrying sign for LINK is also that it’s now trading below its 200-day moving average. This just shows that the first part of 2024 was not particularly successful for LINK. The 200-day MA is now $16.2, and LINK needs to flip this resistance level into support to “catch” that broader uptrend.
Generally, when the price is trading above the 200-day MA, it’s in an uptrend.
RSI on a daily chart is 62, which means the LINK price still has room for growth before it enters an overbought area.
MACD lines send different signals though, as the MACD line is now below the MACD signal line, which is generally a bearish sign.
While the overall trend for LINK remains bearish, the recent whale accumulation could potentially shift the momentum.
The modest pump in the last 24 hours might be an early indication of this change. If LINK can maintain its current momentum and break above the descending triangle pattern, we could see a more significant upward move.
However, it’s crucial to note that the market sentiment and Bitcoin’s performance will likely play a role in LINK’s price action.
Traders should keep an eye on the $16.2 level (200-day MA) as a key resistance to overcome before any bigger pumps.
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