Chainlink Whale Accumulation: Bullish Breakout on the Horizon?

Crypto News- In a recent update shared on the Lookonchain platform, it has come to light that a substantial player in the cryptocurrency market, often referred to as a “whale,” has made a significant purchase of 424,443 Chainlink (LINK) tokens within the past few hours.

Chainlink Whale Accumulation: Bullish Breakout on the Horizon?

This influential investor reportedly allocated $3.25 million for this acquisition, securing LINK tokens at an average price of $7.67 per token. What makes this development even more intriguing is that this particular whale has a track record of sizable LINK purchases, as demonstrated by a prior acquisition on July 20, 2023. During that instance, Lookonchain revealed that the same whale had procured 788,877 LINK tokens, with an estimated value of approximately $6 million. Remarkably, following this earlier purchase, the price of LINK saw a notable increase of 6.5%.

Should this breakout trend upwards, LINK’s price could be positioned to challenge the next resistance level at $7.940 within the upcoming week. If bullish momentum persists, it is conceivable that LINK might transform this level into a robust support zone, potentially setting the stage for further upward movement towards the subsequent resistance barrier at $8.60 in the days that follow.

However, in the event of a downward breakout, there is the risk of LINK slipping below the immediate support level at $7.365, which aligns with the 20-day Exponential Moving Average (EMA) line at the time of this report. A breach of this critical support level could expose LINK’s price to the potential of descending as far as $6.485.

Investors and traders should remain cautious, considering the recent development where the daily Moving Average Convergence Divergence (MACD) line crossed below the daily MACD Signal line. This crossover occurred shortly after LINK fell below the $7.940 mark on October 2, 2023. The MACD indicator’s alignment in this manner may suggest a continuation of the cryptocurrency’s negative short-term trend. If this bearish scenario unfolds, LINK’s price could indeed gravitate towards the $6.485 support level.