Will Chainlink Price Rebound from $12.5 Support?
After experiencing a correction phase, Chainlink (LINK) has seen its price decline by 22.3% in just two weeks. The price broke below the support trendline of a channel pattern, indicating a potential extended correction. However, there are signs that the LINK buyers could counterattack at crucial support levels such as $12.7 and $11.2. On the other hand, a bearish crossover between the 20-day and 50-day moving averages could prolong the correction trend. The intraday trading volume in LINK has increased by 55%, reaching $475 million.
Over the past two months, Chainlink has shown a limited recovery within a rising channel pattern. However, on January 6th, the price broke below the lower trendline of the channel, indicating a potential shift in market sentiment. Despite this downward trend, there was a brief respite as the price rebounded slightly after hitting the 38.2% Fibonacci retracement level at $12.8. If the coin price remains below the channel pattern, it may fall further to hit a 50% retracement level at $11.2.
Whale Accumulation of $17.5 Million LINK Amid Market Correction
A recent observation from Lookonchain has revealed that a single whale or institution has withdrawn around 1,287,492 LINK tokens worth approximately $17.5 million from Binance in just three days. This substantial accumulation during the correction phase suggests that smart money believes in the potential of LINK’s recovery. If the price re-enters the channel, the previous breakdown could be a bear trap, increasing buyer interest. With the possible approval of Bitcoin ETFs, Chainlink could challenge resistance levels at $18.25 and potentially reach $22.
- Experimental Moving Average: The LINK price trading above the 100-day and 200-day EMA reflects bullish mid-term sentiment.
- Moving Average Convergence Divergence: A wide gap between MACD (blue) and signal (orange) in a bearish crossover state indicates an active correction trend.
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Hot Take: Chainlink Faces Extended Correction as Buyers Seek Support
The recent correction in Chainlink’s price has led to a decline of over 22%. However, there are indications that buyers may counterattack at crucial support levels. The intraday trading volume has also seen a significant increase, suggesting renewed interest. On the other hand, a bearish crossover between moving averages could extend the correction trend. Amidst this correction phase, a single whale or institution has accumulated a large amount of LINK tokens, indicating confidence in its recovery potential. If the price re-enters the channel pattern and Bitcoin ETFs are approved, Chainlink could see further gains. Overall, Chainlink’s price movements and market dynamics will continue to be closely watched.
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