After rebounding from a drop to $11 a few days ago, Chainlink has been trading within a well-defined consolidation range. At press time, LINK was trading at $12.65, down 0.22% on the daily charts as the moving averages converged.
This reduced volatility has created a perfect buying opportunity for investors, especially whales.
Chainlink whales add $19 million worth of LINK
Even though Chainlink’s performance remained minimal, whale activity remained very high. According to data from CryptoQuant, the Spot Average Order Size metric has shown large whale orders for seven consecutive days.
As channel watchers noted, these whale orders were primarily focused on demand, particularly as the market cooled.
Source: CryptoQuant
According to Onchain Lens, a whale has purchased Chainlink (LINK) for two consecutive days. On December 22, the whale purchased 360,551 LINK, worth $4.53 million, from Binance.
After the recent acquisition, this whale wallet now contains 806,327 LINK worth $10.17 million. In addition to this whale, Lookonchain has also observed a series of whales accumulating addresses over the past three days.
Notably, 11 newly created wallets purchased 1.567 million LINK, worth $19.8 million, from Binance.
Often, the accumulation of whales during their sideways movements is a sign of quiet confidence in the market, anticipating further rise.
In fact, exchange activities also echoed this accumulation trend. Net exchange flow has decreased significantly since the release of 11 million LINK.
Source: CryptoQuant
According to CryptoQuant, Exchange Netflow has remained negative for three consecutive days. At press time, Netflow was -384.9k LINK, indicating increased FX outflows.
Historically, increased currency outflows have reduced downward pressure, thereby accelerating bullish momentum. Often, such a pattern preceded a price rise.
Is a breakout in sight for LINK?
Chainlink has shown relative strength over the past three days as whales rushed into the market to defend $12. As such, whales have effectively absorbed increasing sales pressure from elsewhere.
As a result, the altcoin surged above the MA9 in the short term, indicating strong bullish momentum in the short term.
These market conditions suggest that buyers have gained enough strength and control to positively impact price movements.
However, Chainlink’s Stochastoc OTT has remained below its K, indicating a weakened overall market structure.
At press time, OTT was holding around 1043, while the signal was above 1042, signaling depressed and limited market conditions.
Source: TradingView
If buyer momentum continues, LINK is well-positioned to rebound from the current range. Thus, continued accumulation of whales could push LINK towards the $14.5 resistance.
However, this upside potential is only valid if the altcoin holds above MA9 at $12.6. Failure to reach this level could send the altcoin back to $11.8.
Final Thoughts
- Chainlink whales purchased 1.567 million LINK, worth $19.8 million.
- LINK is stuck in a tight range and could reach $14.5 if $12.6 levels hold.
