The Chainlink Price Attempts to Break Out
The Chainlink (LINK) price has made several unsuccessful attempts at breaking out from a long-term descending resistance trendline. However, there are signs of accumulation as long-term holders and institutional wallets have withdrawn many coins from the Binance exchange.
Technical Analysis on the Weekly Timeframe
On the weekly timeframe, the LINK price has been following a descending resistance trendline since June 2022. It has made five unsuccessful breakout attempts so far. Before reaching the trendline, the price dipped below a support area but reclaimed it, creating a higher low in August. The weekly RSI indicator is bullish, indicating a positive trend.
Institutional Accumulation
An institution with 81 wallets has accumulated $4.2 million in LINK today. These wallets were created on September 15 and withdrawn from Binance shortly after. Since then, they have accumulated $56 million in LINK. Additionally, six long-term holders have accumulated $2.4 million in Chainlink from Binance today.
LINK Price Prediction: When Will Correction End?
The daily chart shows that the Chainlink price experienced a correction, with a long upper wick on October 8 and a bearish candlestick the next day. According to Elliot Wave theory and Fib levels, the price is likely to reach a bottom soon. The ongoing correction is expected to be part of an A-B-C structure, with the current C wave potentially leading to a low of $6.95.
Potential Bottom and Resistance Level
If the price reaches $6.95, it will also coincide with the 0.5 Fib retracement support level of the entire upward movement. This confluence suggests that the price may bounce back towards the long-term resistance trendline at $8.10. However, if the price closes below $6.95, a drop to the next support at $6.35 may be expected.
Hot Take: Chainlink Accumulation and Price Analysis
The Chainlink price has been attempting to break out from a descending resistance trendline but has been unsuccessful so far. However, there are signs of accumulation as long-term holders and institutional wallets withdraw coins from the Binance exchange. Technical analysis suggests that the price may reach a bottom soon and potentially bounce back towards the resistance trendline. It is important to monitor the support levels for any further price movement.
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