In Summary
Chainlink (LINK) price surged 8% in 24 hours, with trading volume jumping 106% to over $1 billion.
The RSI climbed to 64.3, signaling strong upward momentum but nearing overbought territory, which could limit further gains.
Whale activity remained stable, with key addresses holding steady at 527, suggesting a cautious sentiment among retail investors despite the recent price increase.
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Chainlink (LINK) price has surged over 8% in the last 24 hours, with trading volume skyrocketing 106% to reach $1.04 billion.
Despite this strong price action, whale activity has stabilized, as the number of addresses holding 100,000 to 1,000,000 LINK remains at 527 after previously peaking at 534.
LINK Whales Hold Neutral Stance
The number of addresses holding 100,000 to 1,000,000 LINK increased significantly from 510 on December 18th to a monthly high of 534 on December 27th. This surge in whale activity indicated a period of strong accumulation, reflecting increased interest from large investors during that time.
Tracking whale behavior is crucial, as their buying or selling patterns can significantly influence price trends. Whale accumulation often signals confidence in the asset and can fuel further price increases, as their large transactions create upward momentum.
However, after peaking at 534 addresses, the number has begun to decline slightly and has now stabilized at 527. This recent stabilization suggests that large investors are not currently accumulating or distributing their LINK holdings in any significant way, hinting at a neutral sentiment.
While the price has surged 8% in the last 24 hours, the lack of continued accumulation from whales could be a cautionary sign regarding the sustainability of the recent rally. For LINK’s price to maintain its upward trajectory, renewed interest and increased activity from these large holders may be necessary to provide further support.
Chainlink’s RSI Signals Potential for a Pullback
Chainlink’s Relative Strength Index (RSI) has seen a sharp increase, jumping from 36.9 to 64.3 in just one day. This surge reflects a significant shift in momentum, fueled by strong buying pressure following the recent price rally.
The RSI, a widely used momentum indicator, measures the speed and magnitude of price movements on a scale of 0 to 100, providing insights into whether an asset is overbought or oversold. Readings above 70 indicate overbought conditions, often signaling a potential correction, while readings below 30 suggest oversold conditions and a potential bounce.
At 64.3, Chainlink’s RSI is approaching overbought territory, suggesting that while buying momentum remains strong, the asset is nearing a critical threshold where further price increases may start to encounter resistance. In the short term, this RSI level suggests that LINK still has room for moderate gains, but traders should watch for signs of exhaustion as it approaches 70.
If buying pressure continues, the RSI could move into overbought territory, signaling a potential temporary pullback or consolidation before further price action. Conversely, a stabilizing or declining RSI may indicate that momentum is beginning to fade
LINK Price Prediction: Can it Reclaim $30 in January?
Chainlink’s EMA ribbons are signaling the potential formation of an upcoming golden cross. A golden cross is a bullish indicator that occurs when a short-term EMA crosses above a long-term EMA.
If this golden cross materializes and the current upward trend continues, LINK’s price could see significant upward momentum. The price may test the resistance level at $25.99, and if it breaks through this level, it could pave the way for further gains. Targets at $27.46 and potentially $30.94 could mark a significant upswing for the asset.
On the other hand, the recent whale activity and high RSI suggest that the current rally may not be entirely sustainable, leaving room for a potential reversal. If the upward trend falters and selling pressure increases, LINK’s price could face a correction, testing the immediate support level at $21.32. If this level fails to hold, the price could decline further to $20.02, signaling a deeper retracement.
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