Chainlink has recently experienced notable price fluctuations, initially dipping to a low of $13.03 after facing resistance at $14.2. However, the altcoin demonstrated resilience, managing to close at higher highs for two consecutive days. As of the latest data, Chainlink is trading at $13.38, reflecting a daily increase of 1.28%. Additionally, trading volume surged by 63%, amounting to $314 million.
As LINK remains under its short-term resistance levels, many investors, particularly larger entities, are seizing the opportunity to acquire the asset at a discounted rate. Following LINK’s retracement from $14.2, Chainlink’s whale activity shifted, transitioning from buying to aggressive selling. Between January 7 and 10, the altcoin experienced limited whale purchase volumes. However, the market sentiment has since transformed, with substantial accumulation returning over the past 24 hours.
Data from TradingView’s Whale Buy Activity indicator has highlighted a resurgence in large purchases, with whale volumes exceeding 1.7 million. This was complemented by Onchain Lens reporting an influx of new wallets entering the market to accumulate LINK tokens. Notably, one individual wallet acquired 202,607 LINK tokens valued at $2.7 million, while another secured 207,328 LINK, totaling $2.78 million. Altogether, these two whale wallets purchased 414,935 LINK tokens for a collective $5.48 million.
Further analysis from Coinalyze illustrated that Chainlink buyers have consistently outpaced sellers, as indicated by a positive Buy-Sell Delta between January 10 and 12. During this timeframe, LINK recorded 3.17 million in buy volume compared to 2.6 million in sell volume, resulting in a market delta of 0.57 million. This positive trend suggests aggressive accumulation amidst a backdrop of increasing whale demand, historically known for bolstering asset prices.
Looking forward, the question remains whether this fresh demand will propel LINK toward the $14.2 resistance. The altcoin is showing signs of recovery, indicated by its Stochastic RSI, which has made a bullish crossover and risen to 48, albeit still under the bullish threshold. A rising RSI hints at an emerging buyer initiative, and a move above 50 could validate the bullish trend. Nevertheless, the Relative Vigor Index (RVGI) is currently positioned below its signal line, indicating that sellers are still active. A bullish crossover in the RVGI would be essential for confirming a more substantial reversal.
If the present demand underpins the price action, strains on the selling side could allow LINK to reclaim levels of $13.7, with the $14.2 resistance in sight. However, the persistent risk from sellers remains; if they amplify their influence, LINK’s potential upside could stagnate, threatening critical support at $12.9.
Overall, Chainlink’s recent recovery and whale activity signal a complex interplay between buyers and sellers in the market, with the potential for upward momentum contingent on maintaining buying pressure.
