Cryptocurrency Market Instability as Chainlink Whales Hint at Possible Price Decline – Can Support at $14.27 Hold Firm?
During the previous week, Chainlink [LINK] experienced its most significant monthly decline, plummeting by 26.80% due to intense market sell-offs.
Over the last 24 hours, LINK continued its downward trajectory, showing a 61.2% loss. Some market signals indicated the potential for further decline before any notable price movement.
Key Barrier for LINK
The ongoing downtrend may be a deliberate strategy by market participants to push the price to a more favorable level, where increased buying activity could break through the main obstacle around the $23.78 range.
As per the In/Out of Money Around Price (IOMAP) data, this resistance area contained 110.43 million LINK sell orders representing 96,760 addresses, creating a significant hurdle for any upward price shift.
Nevertheless, based on the IOMAP analysis, LINK might dip towards a support zone between $14.27 and $16.65, where 152 million LINK buy orders from 72,890 addresses could potentially counteract the selling pressure.
Once this support level is touched, there could be sufficient momentum for the price to breach the resistance barrier.
Whales Influencing Market Trends
Recent findings by CryptoCrypto reveal that market whales have been applying downward pressure on LINK’s value over the past week.
The Large Holders Netflow to Exchange Netflow ratio, which tracks whale activities compared to retail traders, displayed an increase in whale-driven sell-offs.
The ratio stood at 0.27% currently, reflecting a 30.26% surge in market movements driven by whales.
If LINK’s price descends to the demand zone of $14.27–$16.65, these influential players might join existing buyers, propelling the price upwards.
Analysis of LINK’s Price Trends
Utilizing Fibonacci retracement lines and technical indicators like the Relative Strength Index (RSI), CryptoCrypto conducted a comprehensive evaluation of potential price shifts.
Fibonacci levels assist in identifying probable support and resistance levels. Currently, LINK has fallen below the $18.01 support mark, approaching the subsequent support at $14.52, which aligns with the IOMAP support area.
The RSI, a tool measuring price momentum and identifying overbought or oversold conditions, indicates that LINK is approaching oversold levels.
At the latest reading, the RSI registered at 34.16, suggesting substantial selling pressure. If LINK reaches $14.52 with an RSI below 30, a reversal might be on the horizon as selling pressure eases.
In conclusion, while whales could influence LINK’s future surge, a resurgence in buying activity combined with reduced selling pressure could result in a price recovery.
Recent findings by CryptoCrypto reveal that market whales have been applying downward pressure on LINK’s value over the past week.
The Large Holders Netflow to Exchange Netflow ratio, which tracks whale activities compared to retail traders, displayed an increase in whale-driven sell-offs.
The ratio stood at 0.27% currently, reflecting a 30.26% surge in market movements driven by whales.
If LINK’s price descends to the demand zone of $14.27–$16.65, these influential players might join existing buyers, propelling the price upwards.