LINK whale accumulation provides Chainlink price with a much-needed 21% boost
|- Chainlink price has recovered from under $6.0 to trade at $7.0 at the time of writing in the span of ten days.
- Whale wallets have noted a spike in LINK balance along with a dip in the supply on exchanges, suggesting receding selling pressure.
- The recent rally is also triggering optimism among LINK holders as unique addresses have hit a two-month high.
Chainlink price was among the front runners of the best-performing assets over the past few days. The altcoin noted significant gains that imbued a sense of optimism within the token holders, too, which was reflected in their behavior while conducting transactions on the network.
Chainlink price aims at recovery
Chainlink price has managed to post impressive gains over the past ten days; however, considering where it fell from last month, the asset might need to continue its green run. Trading at $7.0 at the time of writing, LINK needs to climb all the way back to $7.5 in order to recover the losses it witnessed during the mid-August crash.
The recent 21.55% rise certainly helped the altcoin recover most of the losses, but it needs more juice to keep going. A sustainable rally would only be considered when Chainlink price manages to flip the $7.4 resistance into a support floor to breach $7.5.
LINK/USD 1-day chart
However, on the off chance that the breach fails and the cryptocurrency faces corrections owing to an overheated market, it won’t fall down too far, considering all three Exponential Moving Averages (EMAs) are presently acting as support lines. Falling through them, though, could invalidate the bullish thesis and throw LINK back down toward $6.0.
A correction is not likely
Except for a minor decline every now and then, Chainlink price is not vulnerable to a steep fall anytime soon, considering investors’ behavior. LINK holders have been very active since the rise began, bringing the activity of unique addresses to a two-month high of 3.96k, last noted back in July.
Chainlink active addresses
Actively conducting transactions on the network has also been mostly bullish, as reflected in the supply held on exchanges. The total LINK in the exchanges’ wallets has declined by over 5 million LINK worth around $35.4 million in a week, which hints that the selling pressure is decreasing.
Contribution to this sentiment comes from the whales who have been actively acquiring LINK tokens for days now. Since the rally began, addresses holding between 10,000 LINK to 100,000 LINK tokens have seen a surge of 3 million LINK worth around $21 million.
Chainlink whale holdings
This is a positive development for the altcoin, considering the state of the crypto market at the moment. If the investors continue maintaining this outlook going forward, Chainlink price could have a shot at reclaiming $7.5 as a support level.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.