Chainlink slipped to a low of $13.03 after facing rejection at $14.2 a week ago. However, the altcoin signaled a rebound, closing at higher highs for two consecutive days.
At press time, the altcoin traded at $13.38, up 1.28% on the daily charts, while its volume jumped 63% to $314 million.
With LINK trading below its short-term resistance, investors, especially large entities, have taken the opportunity to buy at a discount.
Chainlink whale adds $5.48 million
After LINK retraced from $14.2, Chainlink whale activity shifted from buying and turned to aggressive selling. The altcoin recorded little to no whale buy volume between the 7th and the 10th of January.
However, the market sentiment shifted significantly over the past 24 hours as whales returned to accumulate.
The Whale Buy Activity indicator on TradingView showed increased buying activity from large entities, with volume surpassing 1.7 million.
Amid this renewed demand, Onchain Lens reported that newly created wallets jumped into the market to accumulate LINK.
One wallet bought 202,607 LINK tokens worth $2.7 million, while the second wallet scooped up 207,328 LINK worth $2.78 million.
In total, these two whale wallets, most likely belonging to a single market player, purchased 414,935 LINK tokens for $5.48 million.
Moreover, Chainlink buyers displaced sellers again, according to Coinalyze data. The altcoin saw a positive Buy Sell Delta between the 10th and the 12th of January.
Over this period, LINK recorded 3.17 million in Buy Volume compared to 2.6 million in Sell Volume. This resulted in a market delta of 0.57 million, a clear sign of aggressive spot accumulation.
Often, when whales turn to buy during a period of weakness, it indicates strong conviction in the market. Historically, higher whale demand has bolstered an asset’s upward momentum, driving prices higher.
Can the fresh demand lift LINK towards $14.2 resistance?
Chainlink showed strength and signaled a potential recovery after its recent slip. In doing so, the altcoin’s upward momentum strengthened, as evidenced by its Stochastic RSI.
The momentum indicator made a bullish crossover and rose to 48 but remained below the bullish zone.
A rising RSI indicates that the buyers had attempted a market takeover. Now, if the indicator surpasses 50 and edges into the bullish zone, it can validate the trend’s bullish strength.
However, its Relative Vigor Index (RVGI) remained below its signal line at press time. Although positive, it suggests that sellers remain relatively active. For a meaningful reversal, the RVGI must also make a bullish crossover.
Therefore, if the demand observed over the past two days holds, with bulls displacing sellers, LINK will reclaim $13.7 and target the $14.2 resistance.
However, sellers’ threat remains elevated—if they increase pressure, LINK’s upside will stagnate, with $12.9 as critical support.
Final Thoughts
- Chainlink [LINK] rebounded from a recent slip to $3.03 and touched a high of $13.52 before a mild pullback to $13.3 at press time.
- Chainlink whale purchased 414,935 LINK tokens for $5.48 million.
