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Chainlink: Whale activity signals more downside – Can demand at $14.27 hold?
The current market trend of Chainlink (LINK) has been bearish, with the cryptocurrency losing 61.2% in the past 24 hours. As the price continues to drop, some analysts are wondering if this downward momentum will continue or if there is a chance for LINK to reverse its trajectory and start moving upward.
One possible factor that could impact the direction of the market is whale activity. According to recent data, these large-scale investors have been driving the selling pressure on LINK over the past week, with a whopping 30.26% increase in whale-driven market activity.
The whales’ massive sell-offs may be contributing to the downward momentum of the cryptocurrency. However, it is crucial to note that this selling activity could also lead to a bounce or an exhaustion gap for LINK’s price, potentially setting the stage for an upward rebound.
Another factor at play here is demand. Specifically, market indicators are pointing towards a potential support level around $14.27. This would be a critical area of resistance that could determine the direction of the cryptocurrency going forward.
If LINK were to hold this demand zone and find support in this region, it may signal that the downward trend has reached its end. In such a scenario, the bears might have exhausted themselves from selling, allowing for a potential reversal in price action.
On the other hand, if the whales’ negative sentiment continues, LINK could potentially fall even further to the next demand zone, around $12.59 and $11.25.
Currently, LINK’s RSI (Relative Strength Index) is indicating that it may be oversold, with an RSI value of 34.16 at the time of writing. This would suggest that some buying pressure might begin as the selling activity slows down.
However, for now, whales remain active and their collective sell-offs continue to weigh on LINK’s price action.
Source: ambcrypto.com
