Chainlink Price Analysis: During the June market correction, the Chainlink price experienced a sharp decline, suffering a 26% loss over the month. However, as supply pressures subsided over this weekend, buyers succeeded in maintaining support above the $12.2 level, which has been a critical floor since November 2023. This level is now viewed as a key turning point for a potential reversal from the recent significant drop.

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Chainlink Price Analysis: Whales Build Positions with $86.7 Million in LINK

Chainlink Price Analysis| Tradingview

As the market witnesses a massive crash over the weekdays, a fresh recovery hits over the weekend. With a similar trend, the LINK price sustains above the $12.59 support level with a lower price rejection on Friday.  

This completes a morning star pattern with the 7.28% bullish engulfing candle. In the larger trend, the ongoing correction phase marks a negative cycle within a triangle pattern. 

As the buyers abruptly halt the negative cycle before reaching the support trendline, a bullish reversal is likely to start.

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Recent on-chain data reveals a significant accumulation of Chainlink (LINK) by whales and institutional investors. A total of 90 fresh wallets have withdrawn approximately 6.72 million LINK, valued at $86.7 million, from Binance recently.

It seems that whales/institutions are accumulating $LINK!

We noticed that 54 fresh wallets withdrew 2.08M $LINK($30.28M) from #Binance in the past 7 days.https://t.co/SkqA1r0F1N pic.twitter.com/VkPt0kwPb4

— Lookonchain (@lookonchain) July 2, 2024

Additionally, another set of data from Lookonchain reveals that 54 fresh wallets withdrew 2.08 million LINK, valued at $30.28 million, from Binance around late May to Early June. The continuous accumulation of LINK by large wallets underscores the growing confidence and interest in Chainlink’s long-term potential.

The anticipated bull cycle can test the overhead declining trendline that has caused two bearish reversals within the triangle. Further, it could reclaim the $15 psychological mark. 

Currently, altcoin trades at $12.919 with an intraday drop of 1.98%. This undermines the bullish recovery but the action sustains above the critical level of $12.58. 

With the breakout rally, the LINK price could hit the $20 mark in the coming weeks. However, the broader market movements will be crucial in deciding the fate. 

Will the Market Crash Drop LINK Under $10? 

Despite the lower price rejection bolstering bull cycle likelihood, a bearish pattern looms over the daily chart.  With a neckline at $12.58, the altcoin reveals a head and shoulder pattern. 

A drop-down under this neckline will put additional stress over the ascending support trend line. This increases the breakdown chances and could result in an end-of-recovery phase. A breakdown rally could hit the bottom support level at $9.46. 

Technical Indicator:

BB: The LINK price challenging the lower boundary of Bollinger Band indicator suggests the sellers remain active towards LINK coin.
MACD: The sideways trend in the MACD and signal lines are indecisive as the price halts a crossroads. 

The post Chainlink Price Analysis Hints $20 Rally Amid Whale-Driven Momentum appeared first on CoinGape.

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Filed under: News - @ July 7, 2024 5:25 pm