Chainlink (LINK) Price Dip: Whale Activity & Potential Rebound
Chainlink (LINK) Price Analysis: A Deeper Dive
Last week saw Chainlink (LINK) experience its largest monthly loss, plummeting 26.80% due to significant market sell-offs. This downward trend continued in the last 24 hours, with an additional 61.2% drop. Market indicators suggest this decline might deepen before a potential price reversal.
Major Resistance and Support Levels for LINK
The current price movement could be a strategic maneuver by market participants to reach a level with sufficient buying pressure to overcome the significant resistance around $23.78. IntoTheBlock's In/Out of Money Around Price (IOMAP) data reveals a substantial resistance zone holding 110.43 million LINK sell orders from 96,760 addresses.
However, the IOMAP also highlights a potential demand zone between $14.27 and $16.65. This zone contains 152 million LINK buy orders from 72,890 addresses, which could provide the necessary momentum to counteract selling pressure. If this demand zone holds, the price could potentially break through the resistance level at $23.78.
Whale Activity and Market Impact
Our analysis shows that large holders (whales) have significantly influenced LINK's price in recent days. The Large Holders Netflow to Exchange Netflow metric, which tracks whale activity against retail investor activity, reveals increased whale sell-offs. At the time of writing, this metric shows a 30.26% rise in whale-driven market activity.
Should the price decline to the $14.27–$16.65 demand zone, these whales might join the buyers already present, potentially leading to a price upswing.
Technical Analysis: Fibonacci Retracement and RSI
Combining Fibonacci retracement levels with technical indicators like the Relative Strength Index (RSI), we can better assess potential price movements. LINK has already broken below the $18.01 support level and is nearing the next support at $14.52, which aligns with the IOMAP demand zone mentioned earlier.
The RSI, a momentum indicator, suggests LINK is approaching oversold territory. Currently at 34.16, high selling pressure is indicated. If LINK reaches $14.52 with an RSI below 30, a price reversal could be likely as selling pressure might ease.
Ultimately, while whale activity is a significant factor, it's not the sole determinant of LINK's future trajectory. A decrease in selling pressure coupled with renewed buying interest could trigger a price rebound.
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