The Chainlink (LINK) has been quite volatile in recent months. At some point, it seemed to be surging explosively but correction kicked in. In recent times, LINK has partially recovered yesterday’s losses to trade at around $10.25 at the time of writing. The 6th biggest digital asset has a market capitalization of $4.01 billion and has gained almost 0.6% in the past 24 hours.
But, the coin is still 10% down on a week-to-week basis. The crypto is attempting to clear a critical resistance zone that is reinforced by a combination of technical and on-chain metrics.
Chainlink Whales Gathering Tokens
As the crypto market seems to settle in with the outcome of the US Presidential elections, LINK investors and traders have a special thing to think about. The growing buying pressure appears to be heavily correlated with LINK whales transactions. Based on Santiment’s transaction tracker, someone was seen transferring 2 million LINK tokens worth almost $20 million between Binance accounts.
The on-chain data provider indicates that this is the 7th instance of such an amount of tokens transferred between these exact blockchain addresses. Interestingly, the previous transaction happened on October 7 and resulted in a 30% LINK price surge in less than five days.
Notably, the Holder Distribution data indicates that the number of wallets storing 10,000 to 100,000 LINK tokens has so far increased by almost 100 in less than one month. A constant upside trend that is visible on the data charts suggests that big investors still maintain confidence in LINK and they continue to accumulate the tokens.
In the meantime, the divergence that exists between the holders’ distribution trend and the price movements may indicate that LINK is gearing up for a major upside correction.
LINK Price Analysis
It is worth noting that the crypto is trying to settle above the strong support zone. Almost 9,000 addresses previously bought more than 49 million LINK tokens between $10.24 and $10.55, according to IntoTheBlock’s “In/Out of the Money Around Price” model.
Interestingly, the supply wall served as strong resistance at the start of the week. If there is a sustained breakthrough and the buy orders continue to pile up, LINK may rapidly rise towards $12 facing little resistance along the way.
But, the bearish outlook cannot be ignored given the unpredictable nature of the crypto market. A rapid increase in the selling pressure behind the token can change $10.24-$10.55 support into resistance, which may, in turn, invalidate the bullish momentum. Under such an occurrence, the LINK price may plunge towards the $9 support zone.