TL;DR
- Chainlink (LINK) has seen a significant rise in whale activity, with 1,659 daily transactions over $100,000, coinciding with a 20% price drop in the past week.
- Analysts suggest that this whale activity could signal large investors accumulating positions at lower prices, potentially indicating a price reversal for LINK.
- Chainlink’s network activity has also surged, with 9,531 unique active wallet addresses, suggesting growing interest and potential for price recovery despite recent declines.
Chainlink (LINK) has seen a significant uptick in whale activity, reaching its peak in 14 months. As reported by the on-chain analytics platform Santiment, there were 1,659 daily transactions involving amounts exceeding $100,000, the highest figure recorded since December 6, 2023. This increase in whale transactions coincides with a 20% drop in LINK’s price over the last week.
https://twitter.com/ali_charts/status/1887011269649023082
Analysts Predict Potential Price Recovery
Even though prices are trending downward, LINK is presently stabilizing between its daily moving averages, with the 50-day MA sitting at $22.76 and the 200-day MA at $15.88. Market analysts suggest that this whale activity could indicate large investors taking advantage of lower prices to accumulate positions, potentially signaling a price reversal.
Technical Indicators Point to Bullish Momentum
Technical analysis indicates that LINK has effectively surpassed multiple resistance levels, creating new support zones in the process. According to CoinCodex’s analysis, LINK may hit $32 by February, which would mark a 27% rise from its current price.
The platform’s projections extend further into 2025, with predictions of LINK potentially reaching $48 by May 2025 if it successfully breaks through the $25 resistance level.
Increased Network Activity and Growing Interest
Chainlink has seen a surge in network activity, with 9,531 unique active wallet addresses now recorded, marking its highest count in the past month. This metric suggests a growing interest in the network beyond just whale movements.
Market analysis indicates that LINK’s price fluctuations have established a distinct trading range between the two primary moving averages. This creates well-defined support and resistance levels for traders to monitor, highlighting potential breakout opportunities.
While the recent price decline has raised concerns among investors, the unprecedented whale activity and technical indicators point to a potential recovery for Chainlink (LINK). As the crypto market continues to evolve, keeping an eye on key stakeholders and market trends will be crucial for investors looking to capitalize on potential opportunities.
