Chainlink’s native token, LINK, is currently making waves in the cryptocurrency market, driven by an influx of interest from crypto whales and long-term holders. According to data from on-chain analytics firm Coinglass, exchanges have seen an outflow of a significant $75 million worth of LINK over the past three trading days.
This large-scale withdrawal from exchanges typically signals growing confidence from long-term investors, who are removing their tokens from exchanges and moving them into private wallets.
Whales Scoop Up LINK: A Sign of Bullish Sentiment?
The massive $75 million worth of LINK flowing out of exchanges is a clear indicator that crypto whales are positioning themselves for potential future gains. In the cryptocurrency world, such outflows typically reflect a bullish outlook as investors prefer to hold onto their tokens for the long term rather than trade them.
Given that LINK’s price has recently experienced some decline, this accumulation suggests that some investors see this as an ideal opportunity to buy the dip and position themselves ahead of an expected rally.
Despite the increasing whale activity, LINK is currently facing some headwinds. As of December 18, 2024, the token is trading at approximately $27.22, having experienced a price decline of over 5.5% in the last 24 hours. Alongside this drop in price, trading volume for LINK has decreased by 18%, signaling reduced market participation compared to previous days.
The TD Sequential indicator has flashed a buy signal on the #Chainlink $LINK 4-hour chart. If the key $26.8 support holds, #LINK could aim for a rebound toward $28.5 or even $30.2. pic.twitter.com/4HaaTSVygf
— Ali (@ali_charts) December 18, 2024
The downturn in price follows a period of consolidation near the $28 support level, which has recently been breached, leading to a shift in sentiment towards the bearish side. If the current trend continues, LINK could see further declines, with the next support level sitting at around $21.75—a potential 20% drop from current levels.
Flashing Buy Signals Amidst the Downtrend
Despite the short-term price struggles, there’s a glimmer of hope for LINK holders. Crypto experts have noticed a buy signal from the TD Sequential indicator, which suggests that LINK’s price could soar to $30.2 in the coming days. The TD Sequential indicator, which tracks price trends over a short-term timeframe, has signaled a potential shift in momentum, offering a glimmer of optimism for traders looking for an entry point.
Technical Outlook: LINK Positioned for an Uptrend?
Looking at LINK’s technical setup, the token appears to be stretched, significantly far from its 200 Exponential Moving Average (EMA) on the daily timeframe. This suggests that LINK may be due for an upward correction, potentially fueling a price recovery. However, market sentiment will be key in determining the next move. If the buy signal from the TD Sequential indicator holds true, LINK could climb back to the $30 mark, offering substantial gains for investors who timed the dip correctly.
Looking Ahead: What’s Next for LINK?
With whale activity signaling potential future growth and technical indicators flashing buy signals, Chainlink (LINK) appears poised for a possible price surge, despite its current price struggles. Investors and traders will be closely watching the next few days to see if LINK can break above key resistance levels and confirm a bullish trend.
As LINK navigates through a period of price consolidation, market participants will need to watch for any signs of reversal. If LINK can maintain its current support and break through resistance levels, a price rally to $30—and beyond—could be on the horizon. Until then, the crypto community is holding its breath, awaiting the next move from one of the most closely watched tokens in the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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