We have seen a substantial build-up on-chain, indicating that chainlink whales are reaching their maximum potential. In only three days, new wallets—possibly controlled by a single entity—have taken out over 1,287,492 LINK, or $17.5 million, from Binance. Is a LINK price surge imminent in light of this noteworthy accumulation?
There is a discernible ebb and flow in Chainlink’s market value when looking at the LINK/USDT chart. Lately, LINK has been trading in close proximity to the 50-day Exponential Moving Average (EMA) at a pivotal point in time. For asset prices, this level frequently serves as a dynamic support or barrier. Given that LINK’s present position is below the 50 EMA, it appears that the company is assessing investor confidence.
https://x.com/lookonchain/status/1744009358168703356?s=20
The recent accumulation by whales on the chart indicates strengths, which may result in purchasing pressure and support a bullish scenario for LINK. Since substantial accumulations might suggest insider confidence or information about impending favourable events within the Chainlink ecosystem, this whale behaviour frequently precedes big price changes.
But there are other vulnerabilities, as the declining trading volume implies, pointing to a lack of involvement from regular investors and perhaps capping any gain. A sustained price gain in LINK would need steady volume and investor interest, both of which seem muted at the moment.
Even with the recent whale action, the price of LINK is still stuck in a range and is unable to move higher. The RSI is not overbought nor oversold, indicating that market sentiment is unclear. It is in a neutral position. In order to indicate a strong bullish reversal, LINK must close above the 50-day EMA with more volume supporting the breakthrough.
