Will Chainlink Price Defy Overhead Supply? Whale Support Hints at 30% Rally

Chainlink is the native token of the Chainlink Oracle network and is reportedly struggling to move past the $30 Chainlink price despite upward movements in the market. As whales are aggressively buying LINK, there is hope for an upside and possibly as high as a 30% bounce back. But, the onslaught of selling pressure remains unabated in checking the virile buyers’ buying interest.

From Coingecko, LINK’s circulating supply is estimated at $17.8 billion, while its 24-hour trading volume is estimated to be $2.13 billion. Will the price action overcome the current overhead supply, or will it collapse further down to a correction?

Activity at Whale Raises Hopes for the Future of LINK

Whale trading has now become a centre of attention for all Chainlink investors. From on-chain analytics found on Lookonchain, there has been a transfer of 529,999 LINK tokens worth $15.5 million from Binance by a major whale in the last three days.

In the last transaction, the exchange made movable of 100000 link, which is equal to $2.95mln. Previously, the withdrawal of a huge amount by whales was believed to be a positive or a bullish signal because most of the tokens are taken out of exchanges for holding or staking.

Lookonchain noted: “A while ago, the whale cashed out 100,000 $LINK ($2.95M) from Binance and in three days, the whale has pulled out $15.5M worth of LINK.”

During this accumulation period there is always selling pressure at $30 resistance level. The rise in whale activity suggests that there may be more fundamental investor optimism, even though the market is cautious now.

Fibonacci Levels Indicate Key Support Zones for Chainlink Price

The Chainlink price has been unable to remain above $30 in recent days as seen by the long-wick rejection candlesticks. Although Bitcoin has gone a notch higher than $100,000, pumping several large altcoins, the link is still in a very vulnerable state.

Based on technical analysis, the Fibonacci retracement has indicated that $25.7 and $22.2 are good support levels for LINK. These levels are standard with the 23.6 and 38.2 percent Fibonacci retracement that provides the opportunity for the buyer to accumulate and withstand a recovery.

If LINK maintains the $25.7 price point, it could reach the $30 resistance level from the buyers. Moving above this range may open the way for a run to the $36 level, which is 30% above the current price. Further selling pressure, however, could have LINK touching other support ranges near $22.2.

A market analyst at CryptoQuant  commented:

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“$30 is a key level of extreme resistance for LINK for the time being.” To reach this level, more solid bullish pressure will be needed, either as a result of more whale buying or other market conditions.

Can LINK overcome overhead supply and rise? 

As much as other digital currencies are experiencing a bear run, Chainlink has proven to be very bullish in previous cycles of a bear market. Despite the current increase in investment by whales, short-run risks are still evident for Long term investors.

The trend of the cryptocurrency will influence the next few trading sessions for the popular coin, LINK. The bulls are ideally positioned above $30 if the buyers are strong enough to ease selling pressure, triggering a rally. On the other hand, breakouts below such levels could lead to further corrections to the chart.

It is also necessary to pay close attention to other market conditions as well. The altcoins like Chainlink price could also be positively impacted by the rise in market participation, which Bitcoin is leading the way. However, due to its highly specialized setting, such as overhead supply characteristics that are often more intense than spot shipping, LINK may have difficulties expanding in the short term unless some major bull signals appear.

Conclusion on Chainlink Price

Currently, Chainlink’s price is under pressure at $30, but at the same time, big whales keep accumulating, which might indicate that there is a lot of fundamental demand for this cryptocurrency. This week will define whether LINK will be able to move past overhead supply to target $36, or if it will succumb to selling pressure and retest lower lows.

Investors should watch the $25.7 and $22.2 support levels, as well as broader market forces, to establish the direction of the cryptocurrency next. However, the short-term outlook is unclear by any estimation, it is long-term accumulation that holds the key to optimism for Chainlink price. Keep following The Bit Journal for the latest updates on Chainlink Price.

FAQs

1. How much does Chainlink Price today?

A: In the meantime, Chainlink’s price is hovering around $30 or so at the time of writing, with $17.8 billion in market capitalization and $2.13 billion in daily trading volume, as seen from Coingecko.

2. What is special about whale activity for Chainlink price? 

A: You usually see whales pulling out subsequently large quantities of LINK from exchanges as a positive sign for a rally because they will hold or stake such coins. Recently, a whale has published that he bought $15.5 worth of LINK, which raises hopes for the uplift.

3. Where are the levels of support for Chainlink located?

A: Fibonacci retracement reveals $25.7 is the key support for LINK fUpdatedAt at anchor along $22.2. These levels could offer support to the formation of higher highs which would be a materialization of the price bounce.

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