- Chainlink (LINK) has dropped 14% in the last 7 days from its recent high of $30.80 to $21, following the broader crypto market correction.
- Large whales holding 1M-10M LINK accumulated 3.58M coins worth approximately $76.9M in just three days during the recent dip.
- LINK is currently testing a critical support zone between $18.90 and $22.90, which aligns with its November breakout level from a descending triangle pattern.
- Technical indicators including MACD and RSI are showing signs of weakening bearish momentum and approaching oversold conditions, suggesting a potential rebound if support holds.
Date: Sat, Dec 28, 2024, 07:57 AM GMT
In the cryptocurrency market, the past two weeks have seen a sharp correction following bullish rallies that began in early November. Bitcoin (BTC) has retraced from its recent all-time high of $108K to its current price of $94K. This pullback has also impacted top altcoins like Chainlink (LINK), which has dropped from its recent high of $30.80 to $21, marking a 14% correction in the last 7 days and reducing its 30-day gains to 18%.
Whale Accumulation
As LINK hit a key support level during this dip, activity among large whales surged significantly. According to today’s report by @santimentfeed, Chainlink’s retracement in the second half of December has attracted attention from key active whales holding between 1M-10M LINK.
These whales have accumulated 3.58M coins, valued at approximately $76.9M, in just the past three days. This accumulation trend suggests that major players are buying the dip, likely anticipating a rebound.
Is A Rebound Ahead?
In November, Chainlink (LINK) achieved a major breakout from a descending triangle pattern that had been in play since the 2021 bull run. This breakout pushed LINK to its recent high of $30.80. However, the ongoing correction has brought LINK back to a critical support zone between $18.90 and $22.90. This zone aligns with its breakout level, indicating this move could be a retest of support.
Currently trading at $21, Chainlink’s MACD and RSI indicators are showing signs that the bearish trend is weakening. Both metrics are approaching oversold conditions, suggesting that a rebound may be imminent if LINK holds this support zone. The presence of whale accumulation further supports the case for a potential recovery.
Technical Indicators
- MACD: Nearing its bottom, indicating diminishing bearish momentum.
- RSI: Close to oversold levels, pointing to a possible reversal.
Conclusion
The recent whale activity and the key support zone around $18.90 to $22.90 make Chainlink a crypto to watch closely in the coming days. If this support holds, a rebound towards $30 could be on the horizon. However, a breach below this zone might signal further downside.
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