Whale activity is making waves as Chainlink approaches critical resistance levels near $25. In recent days, the spotlight has turned toward a notable whale that withdrew 594,998 LINK, valued at a staggering $17.31 million, from Binance. This included a significant withdrawal of 65,000 LINK, amounting to $1.81 million. Traders are left wondering whether this indicates a long-term belief in Chainlink or a precursor to substantial market movements. As of now, LINK is trading at $24.63, down 9.11% in the last 24 hours.
As Chainlink continues to test this crucial resistance zone between $24–$25, it faces a significant barrier that has proven tough to breach in prior rallies. Price indicators, like the MACD, suggest a persistence of bullish momentum, although it appears to be losing steam. Additionally, an ADX value of 41.52 highlights the trend’s strength. If LINK can break through this resistance, the next target would be $30.99, a crucial psychological and technical threshold. However, if it cannot maintain this momentum, a dip back toward $22—a solid support zone—may follow.
On-chain activity reflects a mix of trends concerning LINK’s address activity. There has been a 1.94% increase in new addresses, signifying fresh interest in the asset. In contrast, active addresses have slipped by 1.39%, suggesting a slight decline in engagement. Notably, the fall in zero-balance addresses by 13.87% indicates a positive shift towards long-term holding of LINK by investors. These mixed signals illustrate rising interest alongside uncertainties about the asset’s immediate direction.
Transaction activity also paints a picture of increasing market engagement. The transaction count has seen a 0.69% rise over the past day, now totaling 12.11K transactions. Whether this is in response to recent whale activity or the broader market sentiment is still up for debate. Nevertheless, the uptick in transaction activity hints at a market gearing up for potential price shifts.
Interestingly, LINK’s exchange reserves have seen a slight reduction of 0.17% this past week, now at 163.1489 million LINK. This decline aligns with whale withdrawals and suggests lower selling pressure, as larger quantities of LINK exit exchanges. This trend usually indicates stronger holder sentiment, hinting at a bullish outlook. However, it also invites caution, as reduced liquidity could pose risks.
With recent whale withdrawals and the current testing of price resistance, Chainlink finds itself at a critical juncture. If LINK can maintain its upward momentum and break through the $25 resistance, we may witness a bullish breakout. Conversely, if the momentum falters, a pullback to the lower support levels seems unavoidable. The ability of LINK to surpass $25 will play a pivotal role in determining its short-term market trend.
