Whale Movement Influences $17 Million Worth of LINK, Testing $25 Resistance
Recent activity from large cryptocurrency holders, known as whales, has sparked interest in the Chainlink (LINK) market. One whale withdrew 594,998 LINK from Binance, totaling $17.31 million. Another withdrawal of 65,000 LINK valued at $1.81 million further caught traders’ attention.
The community is now pondering whether these actions signify steadfast confidence in the coin or perhaps a prelude to substantial market movements. As of now, LINK is trading at $24.63, showing a 9.11% decrease in the last 24 hours.
Evaluating Price Momentum and Resistance Levels
Presently, Chainlink is testing a critical resistance range from $24 to $25, historically a significant hurdle in previous uptrends. While the Moving Average Convergence Divergence (MACD) indicator indicates ongoing bullish momentum, there are signs of a weakening trend.
Further, with the Average Directional Index (ADX) at 41.52, the current uptrend’s strength is evident. Breaking through this resistance would set a new target at $30.99, a pivotal psychological and technical level. Conversely, a failure to uphold this positive momentum may lead to a retracement towards the $22 support zone.
Address Activity Reveals a Mixed Outlook for LINK
Analysis of on-chain metrics presents mixed signals for LINK’s address activity. While new addresses have risen by 1.94%, showcasing renewed interest, active addresses have decreased by 1.39%, implying reduced participation.
Moreover, zero-balance addresses have notably declined by 13.87%, emphasizing long-term holders’ confidence. These diverging trends indicate growing curiosity but also uncertainties regarding LINK’s short-term trajectory.
Increasing Transaction Count Indicates Rising Market Engagement
Transaction activity is on a steady incline, reinforcing the narrative of heightened market involvement. Over the past day, transaction counts rose by 0.69%, totaling 12.11K transactions, signifying more participants actively managing their positions.
Whether these movements result from whale withdrawals or broader market trends remains ambiguous. Nonetheless, the surge in transaction volume hints at a market gearing up for substantial price fluctuations.
Lower Selling Pressure Evidenced by LINK Exchange Reserves
The LINK reserves on exchanges have slightly decreased by 0.17% this week, now resting at 163.1489 million LINK. This decline, coupled with the whale withdrawals, indicates a decrease in immediate selling pressure as large amounts of LINK exit these platforms.
Diminishing exchange reserves often signal positive sentiment among holders, as coins leaving exchanges typically suggest long-term storage. While this trend supports bullish sentiments, it also raises caution due to reduced liquidity.
The recent actions of whales and the challenges faced at the $25 resistance level have put Chainlink in a critical position. Successfully overcoming this resistance barrier could pave the way for a bullish breakout. Conversely, a lack of momentum might lead to a pullback to lower support levels. The imminent factor determining LINK’s short-term trajectory lies in its ability to breach the $25 obstacle.