The price of Chainlink (LINK) has risen approximately 4.5% in the last 24 hours and 8.2% over the past week, indicating a resurgence of momentum. This recent uptick is bolstered by increasing accumulation by whales and a rising Relative Strength Index (RSI), which suggests a favorable market sentiment.
The current bullish configuration of the Exponential Moving Average (EMA) lines indicates that further gains may be on the horizon; however, caution is warranted as LINK approaches overbought territory. Significant support and resistance levels will dictate whether the uptrend remains intact or if a pullback is imminent.
LINK Whale Accumulation Pauses: What Lies Ahead?
The number of addresses holding between 100,000 and 1,000,000 LINK has been on a consistent rise this past week, increasing from 525 on October 14 to 541 by October 20. This accumulation aligns with LINK’s price movement from $11.26 to $11.95 during the same time frame.
Notably, the total of whale addresses holding LINK stabilized at 541 between October 20 and October 21, suggesting a halt in accumulation.
Read more: Chainlink ETF Explained: What It Is and How It Works
Keeping an eye on this metric is crucial for deciphering whether whales will reinitiate their buying activities, signaling expectations for additional price increases, or if they will hold their positions, which might suggest a potential consolidation or decline in LINK’s value.
Chainlink RSI Approaches Overbought: Are More Gains Ahead Before a Pullback?
Currently, LINK’s Relative Strength Index (RSI) sits at 63.96, up from 55 just a day prior. This uptick points to increasing momentum, driven by buying pressure that lifts the asset closer to an overbought condition.
The RSI is a crucial tool for gauging the velocity and fluctuation of price movements. Readings above 70 typically signify overbought situations, while values below 30 indicate oversold conditions.
With an RSI reading of 63.96, LINK is nearing overbought territory but has not fully reached that point. This indicates potential for further price appreciation before hitting possible resistance associated with overbought conditions.
If purchasing momentum persists, LINK’s price could see additional gains prior to a possible adjustment.
LINK Price Prediction: Will LINK Rebound to $13 This October?
The EMA lines on LINK’s chart exhibit a bullish configuration, with the shorter-term EMAs positioned above their longer-term counterparts. This arrangement, along with their upward trajectory, suggests bullish momentum is prevailing.
Currently, the price is trading above all these EMAs, indicating sustained strength.
Read more: Chainlink (LINK) Price Prediction 2024/2025/2030
It’s also essential to keep a close watch on LINK’s critical support and resistance levels. Immediate support is found at $10.86, with a drop below this threshold potentially signaling a correction toward $9.94, which would represent an 18% price decline.
On the upside, resistance is anticipated at $12.97. A successful breakout above this level could propel LINK as high as $13.91, indicating a potential growth of 14%.
Disclaimer
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