A specific group of large Chainlink investors is keeping a substantial amount of LINK tokens, and they’re holding onto them at levels not seen in six years.
Chainlink’s price had a robust start this month, but it’s currently experiencing a slight pullback with some downward fluctuations. Right now, Chainlink is trading just below the $7.50 mark, finding support above a long-term trend. This is happening even as other traders are selling their tokens, which suggests these major players have a different strategy in mind.
Accumulation of Chainlink by Whales
Despite the recent downward pressure on Chainlink’s price, large holders of the cryptocurrency, known as whales, have been increasing their holdings significantly over the past week.
According to on-chain data provider Santiment, the current price of Chainlink stands at $7.51, showing an impressive 30% increase in the past five weeks. During this period, wallets holding 100,000 to 1,000,000 LINK tokens have been actively accumulating, adding a total of $38.5 million worth of LINK coins in just one week.
These substantial accumulations by major holders hold more weight in the market than the actions of smaller retail traders who might be taking profits.
Courtesy: Santiment
On the flip side, the ratio of on-chain transaction volume suggests that everyday retail investors have been actively trying to take advantage of the positive market trends. When Chainlink’s price goes up, these smaller investors tend to respond promptly by moving their coins.
Chainlink (LINK) Price Movement
At the moment, Chainlink (LINK) is trading at $7.56, which reflects a nearly 2% increase in the past 24 hours. This gain comes after a slight 5.3% dip in its value. Importantly, the coin has found support at the $7.40 mark, preventing it from dropping to $7.00. The $7.00 level is significant because it’s where the 50-day Exponential Moving Average (EMA) is positioned. Holding onto this support is crucial for LINK’s recovery, with a target of reaching $8.01.
For LINK to reach that level, it needs to string together a series of positive price movements. The Relative Strength Index (RSI) adds weight to this possibility by bouncing back from the neutral line at 50.0, which indicates the presence of bullish momentum.
With this momentum, LINK might have the potential to push its price to $8.01, getting closer to the next major resistance at $8.38. However, if LINK can’t maintain the support level, it might negate the bullish scenario and test the support at $6.91.
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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