LINK, the native cryptocurrency of decentralized Oracle network, Chainlink, records a low volatility trading around $13 mark. The daily chart shows a neutral candle indicating lack of initiation from buyers to sellers in intraday session. While this uncertainty prolongs consolidation in Chainlink price, the latest on-chain data shows that large-investors have been steadily accumulating the altcoin since November, bolstering the price potential for fresh recovery.
Key Highlights:
- The Chainlink price seeks support from a long-coming ascending trendline that acts as a major accumulation zone for buyers.
- The open interest tied LINK futures shows a declining trend, indicating that the speculative traders are reducing their leverage exposure due to price uncertainty.
- Top 100 LINK wallets have added more than 20 million tokens since early November.
Chainlink Whales Accumulate 20M LINK as Price Stalls in Tight Range
The prevailing correction trend in Chainlink price has recently stabilized above the $12 Level. As a result, the coin price shifted its trajectory to sideways, creating a short-consol9dation trend within the $15 resistance and $12 support.
Chainlink’s market behavior reflects a lull in the price’s movement in either direction. Trading patterns have been in a balancing range without any significant changes to the upside or down. In the derivatives segment, the total outstanding positions with respect to LINK futures have seen a moderate decline. Data from Coinglass shows this figure has fallen to $545 million, with a gradual decline in the past periods.
Market participants seem to restrain themselves from aggressive positioning as there is still subdued enthusiasm for levered trades. Meanwhile, the metrics of the blockchain show a steady buying activity from large holders.
Insights from Santiment underline that the 100 most considerable addresses associated with the Chainlink started growing their holdings from the beginning of November. These entities have collectively incorporated an additional 20.46 million LINK tokens, which is about $263 million at current rates.
This pattern suggests targeted inflows into prominent storage places, in contrast to tempered activity in futures. On accumulation it is transferred back into controlled wallets, suggesting focus is long term retention, rather than immediate liquidation.
Such movements are in the context of stable network operations, where token distribution is moved to concentrated ownership.
Chainlink Price Drive Key Accumulation Zone From this Support
In the past four months, the Chainlink price has witnessed a sharp correction trend from $27.87 to current trading price of $12.8, accounting for a 54% loss. Following this drop, the LINK price returns to a long-coming ascending trendline which offers a dynamic support to buyers.
Since June 2023, the support trendline has acted as a major accumulation zone for buyers to recover their bullish momentum. Historically, the previous reversal from the accumulation zone has bolstered recovery with triple-digit gain.
Thus, the technical outlook aligns strongly with the aforementioned whale accumulation trend, stating that the Chainlink price is wavering in a key accumulation phase. The momentum Indicator RSI is reporting fresh higher low formation in the daily chart, accentuating the recovering sentiment building in price.
Therefore , the coin price could continue a Short-term consolidation below the $15 resistance to build sufficient momentum for a breakout. A bullish breakout from the resistance along with a down-sloping can land with a bullish momentum for a potential surge toward the $20 target.
On the contrary, if the price breaks below the bottom trendline, the sellers would send in their grip over this asset for a prolonged correction.
Source: https://www.cryptonewsz.com/chainlink-price-market-accumulation-phase/
