Chainlink price rebounds to $10 during Asian trading hours on Wednesday amid a broader cryptocurrency market recovery. The Bitcoin price surge to $57000 has sparked a fresh relief rally among altcoins, prompting them to form a fresh bottom. Moreover, a detailed analysis of the on-chain data reveals significant activity among whales, indicating a continued buy-the-dip sentiment among large investors.

Chainlink Price Holds Major Support

The near-term trend in Chainlink price is bearish, as evidenced by the formation of a falling wedge pattern in the daily chart. The technical chart setup consists of two converging trendlines, which lead to a series of lower highs and lower lows before a major reversal.

Amid the pattern formation, the LINK price fell from $22.87 to $8.08 within five months to record a 64.6% loss. However, the $8.5 level, which coincides with the 78.6% FIB level and wedge pattern support, creates a buyer accumulation zone. This level previously acted as a major resistance during the May 2022 to October 2023 consolidation trend, indicating a shift in market sentiment.

Chainlink price prediction shows a 6.2% jump in the last 48 hours, boosting its market cap to $6.17 billion. If the fresh reversal sustains, the buyers could drive over 40% to challenge wedge pattern resistance at $14.

LINK/USDT – 1d Chart

Additionally, Intotheblock analytics data reveals that large transaction volumes surged to 683 transactions on Tuesday, matching the levels last recorded at the April 2024 bottom. This surge during a market correction typically indicates that whales accumulate the asset amid the market dip, an activity often viewed as a harbinger of a potential market rebound.

Large Transactions Volume | Intotheblock

However, the bearish cloud in the crypto market persists, suggesting that the coming days and weeks could signal a potential reversal of the downtrend.

According to the Global In/Out of the Money (GIOM) metric, approximately 26.25k addresses currently hold around 22.82 million LINK tokens, with an average purchase price of $8.67. This volume is relatively low compared to other accumulation points, suggesting weak support according to on-chain data. The GIOM metric measures the profitability of addresses based on the current price compared to the average purchase price, providing insights into potential support and resistance levels based on holder behavior.

Global In/Out of the Money | Intotheblock

The bearish crossover state between the exponential moving averages (20, 50, 100, and 200) in the daily chart hints the path to least resistance is down.

Therefore, if chainlink buyers lose price level support in an anticipated market correction, the LINK token could incur a major 35% to seek support at $5.8.

The post Chainlink Price Flashes Buy Signal as LINK Whales Accumulate appeared first on CoinGape.

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Filed under: News - @ August 7, 2024 2:21 pm