The Chainlink price forecast suggests that despite a period of consolidation, there’s been a notable increase in whale accumulation. This indicates that the LINK price might be gearing up for a significant recovery in the near future.
A bullish breakout from the cup and pattern suggests a significant change in the market. Whale accumulation during a period of consolidation suggests that the LINK price may soon experience another upward movement. The intraday trading volume for LINK is $411.5 million, signaling a 29% decrease.
Chainlink Price Prediction: Analyzing Recent Trends
Chainlink’s native cryptocurrency, LINK, has shown slower recovery compared to the broader market. Despite attempting a breakout from the $20.8 resistance level on Monday, the price failed, suggesting ongoing resistance from sellers. As a result, the price dropped by 7.7% over the week to $19.8. The question remains: Will Bitcoin’s potential breakout from $70,000 push LINK back into a recovery trend?
Chainlink Price Prediction| Tradingview
A closer look at the daily chart reveals a bullish cup and handle pattern forming amidst the recent recovery. This pattern typically indicates a transition from a downtrend to an uptrend, resembling a U-shaped recovery. On February 2nd, LINK broke out bullishly from the pattern’s neckline resistance, breaking free from a nearly two-year sideways trend. This breakout surged the LINK price by 23.7% to $21.6, a level not seen since January 2022.
Despite the breakout, supply pressure at $20.8 has halted the recovery trend, leading to sideways movement. This suggests a period of post-rally consolidation. On March 5th, LINK exhibited a long-wick rejection candle at the $17.5 support level, indicating buyer accumulation that helped stabilize the market during the dip.
Whale Interest in Chainlink Signals Potential Price Surge
Lookonchain, a prominent Onchain data tracker, recently revealed that eight new wallets withdrew a substantial amount of LINK tokens, totaling 831,160 LINK, valued at around $16.72 million, from Binance within just two days. This significant movement suggests that large investors, known as whales, are increasingly interested in Chainlink, hinting at a potentially bullish outlook for the cryptocurrency.
It seems that whales are buying $LINK!
We noticed that 8 fresh wallets withdrew 831,160 $LINK($16.72M) from #Binance in the past 2 days.
Address:https://t.co/bkikjTpUtyhttps://t.co/DaBt99fo8Ohttps://t.co/h8fjMdXiU4https://t.co/vcBkwRMUJMhttps://t.co/sD9YDQd4Sj… pic.twitter.com/77Y9RqF3t6
— Lookonchain (@lookonchain) March 9, 2024
Despite a recent slowdown in the recovery trend of LINK’s price, these sizable transactions indicate strategic asset accumulation by whales. This accumulation strategy suggests a strong likelihood of a renewed upward trend in the LINK price. With sustained buying pressure, LINK’s price could aim to reach the theoretical target of $30, signaling a potential growth of 52%.
Technical Indicators Point to Potential Resistance Levels
Pivot Levels: According to traditional pivot levels, LINK’s price may encounter overhead supply pressure at $21.7, $24.15, and $27.4.
Moving Average Convergence Divergence (MACD): A bearish crossover observed between the MACD and the signal line suggests that sellers are currently driving the price movement, indicating a potential downward pressure on the price in the short term.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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