Chainlink (LINK) has been under significant selling pressure, recording its largest monthly loss of 26.80% last week. In the past 24 hours, LINK has extended its downward trend, shedding 61.2%. Some indicators suggest this decline may continue before a major price move occurs.
Major Resistance Level for LINK
Market participants may be strategically driving LINK’s price lower to accumulate at a favorable level before a potential rebound. According to the In/Out of Money Around Price (IOMAP) metric, LINK faces a major resistance zone at $23.78, where 110.43 million LINK sell orders from 96,760 addresses create a significant barrier. However, the IOMAP suggests LINK could find strong demand between $14.27 and $16.65, where 152 million LINK buy orders from 72,890 addresses could absorb selling pressure.
If LINK reaches this demand zone, a rebound could be likely as buyers regain control and push the price higher.
Whales Driving Market Activity
Recent market analysis indicates that whales have been instrumental in LINK’s price decline. The Large Holders Netflow to Exchange Netflow metric, which tracks whale trading activity relative to retail investors, shows a 30.26% rise in whale-driven sell-offs.
At press time, this metric stood at 0.27%, highlighting sustained selling pressure from large holders. However, if LINK’s price drops to the $14.27–$16.65 range, whales may shift to accumulation mode, contributing to an upward price movement.
Also Read: Chainlink (LINK) at a Crossroads, Can It Break $23.78 or Face Another Crash?
LINK’s Chart Movement and RSI Indicators
Technical indicators, including Fibonacci retracement levels and the Relative Strength Index (RSI), provide insights into LINK’s potential price trajectory.
LINK has broken below the $18.01 support level and is now approaching the next key support at $14.52, aligning with the IOMAP demand zone. The RSI, a momentum indicator used to assess overbought or oversold conditions, currently stands at 34.16, signaling strong selling pressure.
If LINK reaches $14.52 with the RSI dipping below 30, selling pressure may ease, leading to a possible reversal.
Conclusion: Potential for a LINK Price Rebound
While whale activity has been driving LINK’s decline, the next major price move will depend on whether buying activity resurfaces. If the asset finds strong support in the demand zone and buying pressure increases, LINK could see a substantial price rebound in the near future.
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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