Chainlink has seen a notable price recovery over the past four days, fueled by significant buying activity from large wallet holders. This resurgence began on Monday, aligning with the purchases from major wallets that have resulted in the token’s price moving towards the upper end of its recent trading range.
Interestingly, while the surge in buying activity does not guarantee future purchases, it comes at a time when momentum has shifted positively, with buyers managing to maintain the price above the $7.20 mark. This has led to increased speculation about whether LINK can surpass key resistance levels in the near term.
Data from on-chain tracker Nazoku reveals that four notable addresses, categorized as whales, have collectively acquired 512,595 LINK tokens over the last four days, with the total cost amounting to approximately $3.78 million at current prices. These transactions involved sizable amounts from each wallet: 251,735 LINK, 120,675 LINK, 113,068 LINK, and 27,116 LINK. This wave of buying may indicate a sustained interest from these wallets, which had previously been accumulating LINK.
At the time of reporting, Chainlink was trading around $7.39, reflecting a 3.4% increase over the last 24 hours. The price saw fluctuations, dipping to around $7.13 before peaking just under $7.43, ultimately settling closer to the higher end. This ongoing recovery has transformed LINK’s outlook, establishing immediate support in the $7.20 to $7.25 range. Maintaining this level would allow traders to focus on a potential breakout at recent highs and a significant resistance point near $7.50. Conversely, a decline below $7.20 might shift attention back to the $7.10 support level.
Technical indicators signal an improvement in momentum, further aiding Chainlink’s recent performance. Analysis of the 30-minute chart shows a rebound in buyer activity following a period of sideways trading. The MACD indicator has turned bullish, with the MACD line crossing above the signal line and the histogram re-entering positive territory. Though modest, this crossover suggests a short-term turnaround in momentum after earlier mixed trading sessions.
Additionally, the Relative Strength Index (RSI) has climbed to 60.58, remaining below overbought territory, which indicates renewed buying interest without reaching excessive levels. The technical chart also highlights a pattern of higher lows throughout recent pullbacks, suggesting that buying pressure has been consistent during this recovery phase.
Overall, the accumulation of LINK by whales coinciding with improving technical signals has contributed to Chainlink’s sustained trading momentum. Should the price hold above $7.20, the current recovery trend remains intact, while breaches above both $7.40 and $7.50 could indicate further upward potential.
