news 
Chainlink: Whale activity signals more downside – Can demand at $14.27 hold?
The cryptocurrency market has been tumultuous over the past week, with many altcoins plummeting in value. Chainlink (LINK) is no exception, as it continues to decline despite some investors predicting a rebound. In fact, LINK’s current downward trend may be exacerbated by whale activity.
According to IntoTheBlock’s Large Holders Netflow to Exchange Netflow metric, which tracks whale-driven market activity relative to retail investors, there has been a significant increase in whale sell-offs. The figure stands at 0.27% at the time of writing, reflecting a staggering 30.26% rise in whale-driven market activity.
This surge in whale activity may not bode well for LINK’s price, as it could signal more downside ahead. However, there is still hope that demand may hold at $14.27.
Fibonacci retracement levels indicate that LINK has dropped below the $18.01 support level and is moving towards the next support at $14.52, which aligns with the IOMAP demand zone. This suggests that whales might not have the final say in determining LINK’s trajectory.
The RSI (Relative Strength Index), which measures price momentum and identifies overbought or oversold conditions, also shows LINK approaching the oversold region. Currently, the RSI stands at 34.16, indicating a high level of selling pressure. If LINK reaches $14.52 along with an RSI below 30, it may be possible that selling pressure will subside and buying activity resumes, resulting in a price rebound.
In conclusion, while whale activity may not be favorable for LINK’s current trajectory, there is still hope that demand could hold at the $14.27 level.
Source: ambcrypto.com
