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Chainlink (LINK) saw a whirlwind of price activity, rising 50% before seeing a sharp 15% bounce within 10 days. This volatility shows the potential and unpredictability surrounding LINK’s recent price movement, drawing the attention of analysts and investors alike.
According to cryptocurrency analyst Ali Martinez, there is a noticeable trend unfolding beneath the surface: Chainlink whales have been steadily accumulating LINK over the past two months. This accumulation by large holders indicates a growing conviction in LINK’s long-term value, reinforcing the bullish outlook for the asset.
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Martinez’s data confirms this trend, highlighting that whales continue to add LINK to their portfolios despite the recent rise and fall in prices. This activity indicates a solid foundation of support at current levels, with whales often acting as market stabilizers.
The coming weeks are expected to be pivotal for LINK, as further accumulation by large holders could lead to another upward move. Investors are now watching closely as Chainlink’s price action could signal a broader shift in sentiment within the DeFi and Oracle sectors. It remains to be seen whether LINK will continue to build on this upward momentum or enter a period of consolidation.
Chainlink wakes up smart money
Chainlink recently posted an impressive rally, in line with the broader market rally as bullish sentiment resurfaces across the cryptocurrency space. Key data from cryptocurrency analyst Ali Martinez indicates a strong accumulation pattern among Chainlink whales, who have amassed more than 15 million links in the past two months – an investment valued at around $165 million.
This large accumulation indicates high confidence among major shareholders, who appear committed to supporting LINK despite its inherent price volatility.
While many altcoins have benefited from a wave of retail-led speculation, Chainlink’s recent rally appears to be driven by more than just short-term market excitement. The active participation of whales, typically seen as more strategic investors, indicates a strong support base at current levels.
Martinez’s analysis highlights that the whales’ accumulation trend has been consistent, even amid price fluctuations, which often indicates confidence in long-term potential.
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However, the next few weeks will be crucial. Analysts and investors are closely watching whether this accumulation trend will continue or is a temporary boost to take advantage of favorable market conditions.
Sustained buying by whales will likely boost LINK’s price further, strengthening the Chainlink network and its utility as a decentralized oracle provider with great value in the evolving blockchain ecosystem. Conversely, if accumulation slows, LINK may see a period of consolidation as the market resets.
Key levels to watch
Chainlink is trading at $13.3 after hitting a local high of $15.3, marking a significant move that has renewed investor optimism. In this latest rally, LINK broke above the 200-day moving average (MA) at $12.8, a critical level often seen as a leading indicator of long-term market sentiment.
To confirm this bullish momentum, LINK needs to hold the 200-day moving average as a support level; If successful, it will reinforce the bullish price structure and indicate the potential for further gains. Maintaining the price above $12.8 would lay a strong foundation for LINK’s price movement, indicating that buyers have established firm control and are ready to defend current levels.
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If this support holds, LINK could make a sustained rally above its recent local high of $15.3. Analysts expect that the confirmed breakout will open the door for LINK to test higher resistance levels, with the possibility of it continuing strongly in the coming weeks.
However, if LINK fails to hold the 200-day moving average, the price may retest the lower support areas, which could disrupt the bullish momentum. For now, all eyes remain on $12.8, as LINK attempts to consolidate its recent gains and prepare for a potential rally.
Featured image by Dall-E, chart from TradingView
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