Exciting on-chain developments have sparked optimism among investors, with Chainlink’s LINK token experiencing a price drop of more than 5% in the past 24 hours.
The so-called “smart money” cryptocurrency whale wallet bought $6.9 million worth of LINK on the Binance exchange amid the decline. This whale currently holds over 417,000 LINK and has previously traded the token profitably this year.
key point
- Smart Money Wallet Accumulated Over 400,000 LINK from Binance Even Amid Recent Price Drops, Having Previously Earned Big Profits from LINK Trading
- LINK price is down more than 5% in the last 24 hours, but remains stuck within the weekly supply zone between $16-18 since early November.
- If LINK breaks the $17 resistance, the next target could be $34.
- On-chain indicators such as active addresses and stablecoin deposits indicate increased user adoption and capital inflows.
- LINK trading volume and valuation indicators suggest that the token may currently be undervalued.
The buildup comes at an interesting time for LINK’s price action. LINK has remained in the $13-$17 range for the past few weeks, after rebounding from $5 in late July to over $17 in early December. It is currently trapped within a key weekly supply zone between $16 and $18, where it has maintained resistance since early November.
A break through this supply barrier could signal a continuation of LINK’s upward trend. There is upward momentum for prices as the weekly Relative Strength Index and Awesome Oscillator are still on the rise. If it breaks $17, the first target is the $20 test. However, an important level for LINK bulls to watch is $34, which represents a psychological milestone.
On-chain data adds to the bullish narrative for LINK. Trading and valuation indicators suggest increased adoption and possible underestimation. Active wallet addresses interacting with LINK surged 63% in December, per Santiment. Tether and stablecoin deposits are also increasing, suggesting new capital ready to purchase LINK dips. And the declining ratio of network value to transactions indicates user growth outpacing recent price increases.
- With whales accumulating and the technology still heading upwards and adoption indicators rising, LINK appears poised to venture into overhead supply territory.
- If it breaks above $17, it could rebound to $20 or $34.
- However, if this resistance is not overcome, there is a risk of a decline to support below $13.
- However, overall blockchain activity suggests that the LINK ecosystem continues to grow.
