As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of market corrections and recoveries. The recent correction in Chainlink (LINK) price was no exception, with a significant 26% loss over the month. However, as a long-term believer in LINK’s potential, I saw the recent dip as an opportunity to accumulate more at lower prices.
In June’s market downturn, Chainlink price took a hit, dropping by nearly a quarter (26%) in just one month. Yet, over the weekend, demand outweighed supply, enabling buyers to prevent further declines below $12.2 – a crucial support level established since late 2023. This pivotal point is now seen as a potential sign of an impending price rebound from the recent substantial decline.
Chainlink Price Analysis: Whales Build Positions with $86.7 Million in LINK
Over the past week, the market has experienced a significant downturn. However, there’s been a noticeable bounce back during the weekend. Following this pattern, the LINK price remains above the $12.59 support level despite a minor price drop on Friday.
A morning star pattern is formed when a small bearish candle is followed by a large bullish candle, signifying potential reversal from a downtrend. In this case, the bullish engulfing candle closes at 7.28% above the previous day’s candle. Looking at the bigger picture, this correction phase represents a negative cycle within a triangle pattern, indicating an ongoing trend correction before potentially resuming the uptrend.
When buyers interrupt the downward spiral just before hitting the support line, a bullish turnaround becomes imminent.
As an analyst, I’ve noticed some intriguing trends emerging in Chainlink (LINK) transactions on the blockchain. Specifically, there has been a substantial increase in accumulation by whales and institutional investors, as evidenced by the appearance of 90 new wallets that have withdrawn around 6.72 million LINK, worth approximately $86.7 million, from Binance.
It seems that whales/institutions are accumulating $LINK!
We noticed that 54 fresh wallets withdrew 2.08M $LINK($30.28M) from #Binance in the past 7 days.
— Lookonchain (@lookonchain) July 2, 2024
An alternate source of information from Lookonchain indicates that approximately 54 new wallets withdrew a total of 2.08 million LINK, equivalent to around $30.28 million, from Binance between late May and early June. This mass withdrawal highlights the escalating belief and anticipation among large investors regarding Chainlink’s future prospects.
In simpler terms, the expected bull market may challenge the downward-sloping trendline that has triggered two bearish corrections inside the triangle formation. Additionally, it might surpass the symbolic price level of $15.
As a researcher observing the market, I note that the current price of altcoin stands at $12.919, representing a 1.98% decrease in value from previous intraday highs. This downward trend challenges the bullish recovery but remains above the crucial support level of $12.58.
The surge in LINK‘s price may push it towards the $20 threshold within the next few weeks. Nevertheless, the overall market trends carry significant weight in determining its final outcome.
Will the Market Crash Drop LINK Under $10?
Although the discounted price may boost the probability of a continuing bull market, a bearish trend is hinted at in the daily chart. The cryptocurrency displays a head and shoulders pattern with a neckline at $12.58.
If a drop-down occurs beneath this neckline, it may exacerbate the tension on the uptrend line, making it more likely for a downward trend to take hold. This could potentially signify the conclusion of the current recovery phase. A possible rebound following a breakdown might reach the support level at $9.46.
Technical Indicator:
- BB: The LINK price challenging the lower boundary of Bollinger Band indicator suggests the sellers remain active towards LINK coin.
MACD: The sideways trend in the MACD and signal lines are indecisive as the price halts a crossroads.
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2024-07-07 20:30