Is Chainlink’s [LINK] whale activity enough for a strong rebound
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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- The 3-hour chart was bearish at press time.
- LINK recorded significant whale activity above $1 million.
Chainlink’s [LINK] recovery wasn’t apparent at the time of writing, despite registering considerable whale activity. LINK had broken below an ascending channel but was checked by 200 EMA (exponential moving average) of $7.042. But the recovery faced two key obstacles, the channel’s lower boundary and 50 EMA ($7.200).
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At press time, Bitcoin [BTC] was operating below $28K but could rebound on Monday (March 26) amidst increasing fears about banking turmoil in the EU.
Deutsche Bank shares fell over the weekend as recession fears deepened. A likely bullish BTC could tip LINK back into its ascending channel next week.
A false bearish breakout?
On Saturday, 25 March, bears pushed LINK below its ascending channel. But bulls defended the 200 EMA, allowing recovery to occur. But they can only gain leverage if they overcome key obstacles.
As such, LINK could see more sell pressure if it closes below the channel’s lower boundary. Near-term bears could drop it to the 200 EMA ( $7.042). Other key support levels southwards include $6.895 and $6.671. These levels could act as shorting-selling targets.
But a close above the two obstacles – the channel’s lower boundary and 50 EMA ($7.200), could offer bulls leverage to continue with the recovery. The next likely target for bulls would be the channel’s mid-level of $7.513 or the upper boundary.
At the time of writing, the RSI’s value was 44- a bearish signal that showed bears’ influence in the market. The OBV (On Balance Volume) had an uptick, showing trading volumes spiked, boosting recovery witnessed at press time.
LINK recorded significant whale activity
According to Santiment, LINK saw significant whale activity, transacting over $1 million, which could have boosted the recovery. But the recovery could only be sustainable if bulls clear the two overhead hurdles and BTC surges towards $28K.
Read Chainlink [LINK] Price Prediction 2023-24
Nevertheless, the 90-day Mean Coin Age rose, indicating a massive accumulation of LINK tokens- evidence of a likely rally. In addition, supply outside of exchanges spiked, further confirming the accumulation trend witnessed in the past few hours.