Chainlink has been unable to break out of its binds since a few days. [LINK] A pullback was caused by the rejection of $14.9. LINK’s daily chart showed that it was currently trading at $13.63, a drop of 4.15%.
This market retracement, in particular, has opened up a window for buyers, particularly among whales.
Whale Accumulates $22M Worth of LINK
From early November LINK CryptoQuant has reported significant orders related to whales. CryptoQuant’s data on average order size for spots showed large whale orders 28 days in a row.
Source: CryptoQuant
This sustained pattern of orders for whales indicates increased activity, whether through purchasing or selling.
These whales were reported to be buying in this instance. Onchain Lens. According to Binance’s and Kraken’s “on-chain” monitor, a Whale bought 1,62 million LINKs valued at $22,01 million.
The whale’s haul of 557.94K tokens, worth $8.03million, was accumulated in just two days. Total, the whale holds 2,18 million LINKs.
As they are expecting more gains, whales tend to accumulate in numbers.
The exchange market has echoed the accumulation trend. CryptoQuant reports that Exchange Netflow has dropped to a new low of -151k Tokens.
Source: CryptoQuant
Netflow that is negative indicates increased withdrawals from the exchange market, and this can be interpreted as an indication of greater accumulation.
But why is LINK having trouble?
Retail investors have taken advantage of the recent increase in value.
Retail traders began to withdraw their funds when Link reached $14.9. Coinalyze reports that Chainlink has had a negative Buy Sell Delta on three days in a row.
Coinalyze
Over the course of this time period, retailers sold 8.1 millions in volume as compared with 7.32 million for Buy Volume. The altcoin registered a Buy Sell Delta (-0.78million) indicating an increase in selling activity.
Link’s recent drop in price is due to the significant pressure that retail sales have put on it.
How can whales overcome $14 in resistance?
While whales continue to grow, the buying power of these animals has not been sufficient to offset retail pressure.
Chainlink’s pressure to fall has therefore continued. Stochastic RSI for the altcoin has made a negative crossover and dropped to 74 as of press time.
A positive Index Directional Movement Index is now around 19, while the negative Index remains at 19.
TradingView
When these indicators continue to remain at this level, they usually indicate a downtrend with the sellers in charge.
Link could suffer further losses due to these market conditions. If retailers keep selling whales Link, they will continue to see losses. Support can be found at around $12.70.
But if the whales’ accumulation rate is high enough to overpower sellers, it will be $14. It could also be $15.
Last Thoughts
- The Chainlink Whale bought 1,62 million LINK tokens for $22,01 million
- LINK declined 4.15% following rejection as upward momentum weakened.
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Source: ambcrypto.com
