Chainlink (LINK) shows potential for recovery amid market fluctuations. Accumulation by new wallets and bullish technical signals suggest a possible rebound.
Chainlink (LINK) has experienced a volatile period, but recent data indicates a potential recovery. Let's dive into the latest developments.
Chainlink (LINK): Holding Its Ground
Despite a recent 30% drop, Chainlink (LINK) is showing signs of resilience. Recent trading activity suggests buyers are stepping back into the market.
Whale Accumulation
Data indicates that approximately 270,000 LINK tokens (worth around $4.6 million) were withdrawn from Binance wallets, hinting at whale accumulation. This could signal increased confidence in LINK's future performance.
Technical Analysis: Bullish Divergence
A hidden bullish divergence between June and early October, where LINK's price made higher lows while the Relative Strength Index (RSI) fell, suggests the larger uptrend might still be in play. A close above $21 could trigger a move towards $24–$27.
Potential Double Bottom Formation
Chainlink price appears to have formed a potential double bottom in the $15.00–$15.70 region. The neckline of this potential reversal pattern lies around the $20.00 mark, which, if broken, would activate a measured move target near $25.00–$26.00.
New Wallets Stacking LINK
On-chain data reveals that 30 new wallets have withdrawn 6,256,893 LINK ($116.7M) from Binance since October 11. This suggests investors are moving large amounts into private wallets for holding rather than active trading, which could provide additional support.
The Bigger Picture
While technical indicators and whale activity provide encouraging signals, traders should remain cautious. A drop below $16 could lead to further declines towards $14 or even $12 before stability returns. Keep an eye on overall market sentiment and external factors like potential Fed rate cuts, which could influence crypto market trends.
Final Thoughts
Chainlink's performance is definitely one to watch. Will LINK continue its recovery and reach new heights? Only time will tell, but for now, things are looking up!
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