- Chainlink (LINK) has seen significant whale accumulation with 11 new wallets withdrawing 241,360 LINK worth $4.92 million in the last 24 hours, demonstrating confidence despite market corrections.
- LINK broke out of a descending triangle pattern from 2021 last month, reaching a local high of $30.80 before the current market correction pulled it back.
- The token is currently trading at $20.61 within a critical support zone between $18.70 and $22.90, with technical indicators suggesting the bearish trend may be weakening.
- If LINK maintains current support levels, it could target a recovery toward $30, but failure to hold support might lead to further downside toward $18.70.
Date: Tue, Dec 31, 2024, 12:25 PM GMT
The cryptocurrency market has been on a downward trend throughout December, with Bitcoin (BTC) retreating from its all-time high of $108,000 to current levels above $94,000. This correction has rippled through the altcoin market, including Chainlink (LINK). Despite an impressive rally in November, LINK’s monthly gains have now reduced to 10%, reflecting the broader market’s pullback.
Whale Accumulation Surges
Amid the market correction, whales are showing renewed interest in LINK. Data from @OnchainDataNerd reveals that in the last 24 hours, 11 new wallets collectively withdrew 241,360 LINK, valued at approximately $4.92 million.
These wallets now hold a combined total of 635,770 LINK, worth $13.83 million, with an average entry price of $21.76. The surge in whale activity underscores their confidence in LINK’s long-term value, even during market corrections.
What’s Next?
In last month, Chainlink (LINK) broke out of a descending triangle pattern that had been suppressing its price since the 2021 bull run. This breakout propelled LINK to a local high of $30.80, marking a significant milestone in its recovery.
However, the current correction has brought LINK back into a critical support zone between $18.70 and $22.90. This area aligns closely with its resistance breakout level, suggesting the possibility of a retest before any major move.
Currently trading at $20.61, Chainlink’s technical indicators suggest that the bearish trend is weakening. Both the MACD and RSI are moving closer to oversold levels, indicating a possible reversal ahead. However, as these indicators have not yet fully bottomed out, there is a chance that LINK’s price could dip further toward the lower boundary of its support zone, around $18.70, before initiating a recovery.
This potential dip, combined with strong whale accumulation, reinforces the likelihood of a rebound from this critical support area.
If it holds support, Chainlink could aim for a recovery toward its recent high of $30. However, a failure to maintain this level might lead to further downside.
Conclusion
Chainlink remains a cryptocurrency to watch as we close out 2024. The combination of strong whale activity, critical support zones, and potential technical reversals sets the stage for an intriguing January. Investors should keep an eye on whether LINK holds its support and begins a recovery toward $30 or if further downside risks materialize.
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