• Chainlink price regained ground above a substantial supply area that now serves as strong support.
  • On-chain metrics show LINK enjoys the confidence of the large investors.

Chainlink (LINK) has partially recovered the previous day's losses to trade at $10.5 at the time of writing. The 6th largest digital asset with the current market capitalization of $4.1 billion has gained 1.8% in the last 24 hours; however, it is still 9% down on a week-to-week basis.

The cryptocurrency is trying to clear a vital resistance area reinforced by a combination of technical and on-chain metrics.

Chainlink whales accumulating tokens

As the cryptocurrency market gets comfortable with the outcome of the US Presidential elections, LINK traders have something special to think about. The mounting buying pressure seems to be correlated with LINK whales transactions. According to Santiment's transaction tracker, someone transferred 2 million LINK tokens (about $21 million) between Binance accounts. 

The on-chain data provider reports that this is the seventh instance of this amount of tokens transferred between these exact addresses. Notably, the previous transaction took place on October 7 and resulted in a 30% LINK price increase in less than five days. 

LINK's transaction tracker
 

Besides, the Holder Distribution data shows that the number of wallets holding 10,000 to 100,000 LINK tokens has increased by nearly 100 in less than a month. A steady upside trend visible on the chart below implies that large investors maintain confidence in LINK and continue accumulating tokens. Meanwhile, the divergence between the holders' distribution trend and the price movements may signal that LINK is on the verge of a massive upside correction.

LINK's Holders' Distribution

LINK price forecast 

It is worth mentioning that the altcoin is trying to settle above the strong support area. Based on IntoTheBlock's "In/Out of the Money Around Price" model, nearly 9,000 addresses previously purchased over 49 million LINK tokens between $10.24 and $10.55. Notably, this supply wall served as formidable resistance at the beginning of the week. If the breakthrough is confirmed and buy orders continue to pile up, LINK may quickly move towards $12 with little resistance on the way. 

LINK In/Out of the Money Around Price

Given the unpredictability of the cryptocurrency market, the bearish outlook cannot be disregarded. 

A sudden spike in the selling pressure behind the token that can flip $10.24-$10.55 support into resistance may invalidate the bullish scenario. Under such circumstances, LINK price could drop towards the next local hurdle of $9.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP