Cardano (ADA) and Chainlink (LINK) Prices Surge with Whale Support: What’s Next?
Crypto News – Over the past week, both Cardano (ADA) and Chainlink (LINK) have experienced significant price increases, much to the satisfaction of their investors. For instance, LINK, which was trading at $15.03 at the time of writing, has witnessed a remarkable 33.31% surge in its value within the last week.
Similarly, ADA, which had faced significant declines earlier in the year, has seen its price rise by 15.86% during the same period. This uptick in prices has reignited optimism in the cryptocurrency market. However, according to on-chain data provider Santiment, these price surges may not have been possible without the involvement of large cryptocurrency holders known as “whales.”
Santiment reported in a post on November 10, via their X (formerly Twitter) account, that whale transactions involving LINK and ADA, each valued at over $100,000, reached their highest levels in the past six months. Typically, such whale transactions are expected to contribute to further price increases, a notion that Santiment endorsed. However, they also noted the possibility of profit-taking in the interim before another upward trend.
ADA’s Potential to Reach $0.41
Analyzing the 4-hour ADA/USD chart, it is evident that both buyers and sellers are active in the market. Sellers are aiming to capitalize on their gains from the past seven days.
Therefore, it is crucial to determine the price level at which ADA might settle after a wave of profit-taking. To achieve this, Coin Edition considered Fibonacci retracement levels. At the time of writing, the 0.382 Fibonacci retracement level stood at approximately $0.36, making it a highly likely support level for ADA.
Thus, there is a possibility that ADA may resist selling pressure at $0.36. If buying pressure resurfaces, the 1.618 Fibonacci retracement level suggests that ADA could potentially reach $0.41. This price point might also be where market participants begin to realize profits.
The Relative Strength Index (RSI) has fallen to 58.02, indicating a decrease in buying momentum. If the RSI continues to decline, ADA may dip to $0.36 before experiencing another upward movement.
LINK Aiming for $20
In the case of LINK, the Directional Movement Index (DMI) reveals that bullish tendencies remain strong. At the time of writing, the +DMI (green) was at 29.43, while the -DMI (red) stood at 11.84.
The substantial difference between these DMIs suggests that LINK is more likely to experience an uptick rather than a downturn. This observation is supported by the Average Directional Index (ADX), which, as of the current analysis, measured 45.25. An ADX reading above 25.00 signifies strong support for LINK’s upward movement.
Furthermore, the Awesome Oscillator (AO) registered a positive value of 1.394, signaling a bullish trend. This implies that LINK is less likely to retrace its price compared to ADA. If accumulation and whale interest continue to grow, LINK might be on the verge of reaching $20.