Date: Sun, Dec 22, 2024, 11:38 AM GMT
The cryptocurrency market has experienced notable correction this week. Bitcoin (BTC) dipped sharply on December 17, reaching a low of $92,000 before recovering to trade above $97,000. In the wake of this volatility, top altcoin like Chainlink (LINK) also saw significant corrections, falling over 21%.
However, LINK has shown resilience above a critical support level and is currently trading at $22.48
Whales Are on the Move
As LINK stabilizes, activity among large investors—known as whales—has surged. Lookonchain data reveals that nine newly activated wallets have collectively withdrawn 362,380 LINK tokens, worth approximately $8.19 million, from Binance in the past 48 hours.
This significant outflow of LINK tokens from a centralized exchange like Binance suggests that these whales are accumulating LINK for long-term holding rather than trading. Such movements often signal a vote of confidence from large investors, as it indicates they believe in the token’s potential for future price appreciation.
What’s Next for LINK?
Chainlink’s recent correction of approximately 22%, from its December 17 high of $28 to its current price of $22.15, aligns with a retest of its previous breakout zone. Earlier, LINK successfully broke above the $18.39–$22.52 resistance range, propelling it to a high of $30.80.
The current pullback has brought LINK back into this key support zone. The token has shown strength, bouncing from a low of $20 and now trading at $22.48. This price action suggests that LINK may be entering an accumulation phase, potentially setting the stage for a reversal.
If this support level holds and buying pressure continues, LINK could aim for a recovery to its recent high of $30.80—a 35% upside from its current price.
Final Thoughts
The growing whale activity and LINK’s ability to hold a critical support zone are promising signs for investors. While the current price action suggests potential upside, caution is always warranted in such volatile markets.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.