Like other altcoins in the market, Chainlink has experienced a massive downtrend following several catastrophic events in space. This year seems to bring the most impactful momentum for LINK’s price as it lost over 71% from its yearly highs.
However, LINK has been making a significant upward retracement in the last few days as the news of staking on the Ethereum mainnet has filled positive sentiments among investors.
Additionally, over the previous 48 hours, LINK witnessed an exponential spike in whale accumulation as holders found this staking a lucrative opportunity to generate astronomical rewards amid market turmoil.
Chainlink Whale Accumulation Sees New Highs!
Chainlink’s ecosystem is bullish on its future potential as it continuously introduces overwhelming enhancements to the network. Recently, the announcement regarding LINK staking on the Ethereum network has awakened whale investors with a ray of hope of a significant ROI in an upcoming bull run.
According to a prominent on-chain data provider, Santiment, whale holders holding between 1K-1 million LINK tokens have added nearly 26.8 million Chainlink to their portfolios. The firm further highlights that the whale accumulation rate has jumped by 12% in the last 30 days, signifying a substantial interest in pushing LINK’s price to the North.
Moreover, an on-chain analytic firm, LookonChain, tracked a whale transfer of a total of 455K (~$3.4M) LINK tokens to 65 different addresses, each amounting to 7K Chainlink tokens. However, the firm gave some relief to the community as the transfer was mainly focused on deploying in LINK staking rather than selling, as the maximum staking limit of each LINK address is 7K.
Chainlink Price Will Turn Bullish After This Breakout
As the altcoin market registers a significant gain in its price, whale investors and traders have switched their attention to major altcoins to pull out maximum profit amid the bearish trend.
A well-known crypto analyst and founder of Eight Global, Michael Van De Poppe, predicts a solid bullish momentum for LINK’s price ahead.
The analyst expects Chainlink to continue its current uptrend to a resistance zone of EMA-200 between $8.5-$9 as LINK made an unexpected bounce from $7.2.
According to CoinMarketCap, the current price of LINK is trading around $7.36, with an uptrend of nearly 1% from yesterday’s performance. After obtaining an intense negative momentum in the last few weeks following FTX’s demise, the token has now initiated a potential upward rally with a gain of over 40%.
The RSI-14 line is climbing the graph quickly and hovers around the level of 54, hinting at a clear bulls’ domination for LINK’s price. Moreover, the MACD line forms continuous bullish candles above the signal line, which may push the LINK token to test its resistance above 31.6% Fib retracement.
If LINK’s price holds above $7.8 due to massive whale accumulation, it can quickly aim for a breakout above its EMA-200 trend line at $8.5, from which the price may be further triggered to its Bollinger band’s upper limit of $9.
However, the bullish analysis may get rejected if LINK drops parallelly with the weekly RSI level to 40, which can plunge the token into trading near the critical support region of EMA-50 at $7. If LINK’s price drops further, it may collapse again to Bollinger band’s lower limit of $5.5 and continue its bearish bloodbath by the beginning of the new year.