Chainlink has experienced a moment of relative stability following a downturn that saw its price dip to $11 just over a week ago. Currently, LINK is trading at $12.65, reflecting a slight decrease of 0.22% on the daily charts. The market’s moving averages are showing signs of convergence, signaling reduced volatility which, in turn, may present advantageous buying opportunities for investors, particularly large-scale purchasers.
Recent data from CryptoQuant highlights a notable surge in whale activity, with significant orders consistently recorded over a seven-day period. In particular, the Spot Average Order Size metric pointed to an ongoing demand from whale investors amidst a cooling market. On December 22, one prominent whale acquired 360,551 LINK tokens, valued at approximately $4.53 million, from Binance. This acquisition has brought the whale’s total holdings to 806,327 LINK, worth about $10.17 million.
Moreover, Lookonchain reports that over the past three days, a group of 11 newly established wallets has collectively purchased 1.567 million LINK, amounting to $19.8 million from Binance. Such accumulation by whales during periods of sideways market movement often indicates a bullish sentiment, suggesting these investors anticipate a potential price increase.
Activity on exchanges further illustrates this trend. After the recent unlocking of 11 million LINK, exchange netflow has turned distinctly negative, with the latest figures from CryptoQuant showing a netflow of -384.9k LINK over three consecutive days. Historically, a rise in exchange outflows tends to alleviate downward price pressure, creating a favorable environment for upward momentum.
CHAINLINK has displayed resilience in the face of selling pressure, particularly as whales stepped in to uphold the price at around $12. This defensive measure has allowed the altcoin to breach the short-term MA9, suggesting that momentum could shift positively. However, despite this potential for upside, technical indicators such as the Stochastic OTT remain below key thresholds, suggesting a potentially weakened market structure.
Currently, the OTT is around 1043, with the signal slightly above at 1042, indicating a constrained range-bound state within the market. Should buying momentum continue, LINK may be poised to rally towards a resistance level of $14.5. However, for this upward trajectory to remain viable, the price must maintain support above the MA9 threshold of $12.6; failure to do so could lead to a retracement back to the $11.8 level.
In summary, with Chainlink whales having amassed a substantial 1.567 million LINK valued at nearly $19.8 million, the altcoin finds itself in a precarious yet promising position. Its ongoing trading within a narrow range could pave the way for a breakout towards $14.5, contingent on maintaining key support levels.
