Chainlink Whale Accumulation Sparks Potential for Major Price Reversal

The cryptocurrency market is exhibiting signs of positive momentum, with Bitcoin consistently seeking to recapture the $60,000 level where it was previously trading. Yesterday, the German government decided to liquidate all of its Bitcoin holdings, alleviating a large amount of supply pressure.

This decision was the catalyst for the market recovery observed today. The Chainlink price study reveals that the altcoin industry is experiencing a good trend, which has led to a three-day rally that has resulted in a 6% increase and reached a trading value of $13.1.

Chainlink Price Analysis: Whales Amassing 12.75 Million LINK

Despite the market's ongoing concentration, Chainlink's price maintained its steady position above $12.2. Buyers could produce powerful accumulation targets by utilizing this horizontal level with the support trendline of falling wedge patterns, Coingape reported.

Due to demand pressure, the asset price increased to $13.12, while the market capitalization increased to $7.97 billion. An investigation carried out not too long ago by the on-chain data tracker lookonchain found that many unnamed entities, most likely whales or institutional investors, have been amassing significant quantities of Chainlink (LINK) tokens.

Beginning on June 24, 2024, lookonchain has discovered 93 new wallets engaged in the withdrawal of around 12.75 million LINK from Binance, estimated to be worth approximately $167 million. Coingape, on the other hand, reported a similar incidence of whale-buying operations at the beginning of June, highlighting a repeating accumulation trend during a market decline.

LINK Price Prediction indicates the potential for a significant reversal shortly. This is because the market is exhibiting indications of recovery, and there has been solid whale-buying activity. Based on the assumption that the wedge pattern is accurate, the price of Chainlink might reach 24.6% to get the overhead trendline at about $16.34.

In addition, the wedge's covering trendline suggests that the sellers may gradually lose their impetus, which would result in an upward breakout from the trendline that slopes downward. As a result of the probable breakout, the bullish momentum will be accelerated, and buyers will be strengthened to aim for a rally over $25.

If the overhead trendline continues to demonstrate its strength, the Chainlink price analysis may signal a lengthy correction trend that will run for several weeks or even months.

Technical Indicator

• BB Indicator: A downward trend in the Bollinger Band indicates that the sellers have not given up yet, which could extend the ongoing consolidation for a while.

• RSI: The daily Relative Strength Index rise above 45% indicates the market sentiment entered a neutral territory.

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