In recent days, the altcoin market has witnessed a significant depreciation, wiping out most of the gains made at the beginning of the ‘Uptober’ trend. With LINK experiencing significant selling pressure near its resistance level, long-term investors have shifted into accumulation mode and are buying LINK at a lower price. This strategy could increase LINK’s potential for future upside by strengthening the immediate support level.
High transaction volume exceeds $100 million
As LINK’s price continues to fall, whales are on the hunt for a substantial share of the altcoin. LINK has previously shown its bullish potential, and analysts expect the continued decline could be temporary as the support line continues to strengthen daily.
Interestingly, one institution that collected $4.2 million in LINK this week used 81 wallets. These wallets were created on September 15 and were withdrawn from Binance three days later. Since then, they have collected a total of $56 million in LINK. Additionally, six long-term holders collectively acquired $2.4 million worth of Chainlink from Binance. Each of these accounts manages over $800,000 worth of LINK and has not engaged in trading altcoins other than LINK.
Data from IntoTheBlock reveals a significant increase in high transaction volume from October 7. The metric rose from a low of $14.6 million to a high of $103 million on October 10 and is currently stabilizing around $99 million, indicating recent substantial whale activity in the LINK price.
This could point to two scenarios: Wales could liquidate its LINK holdings to safeguard profits amid a falling price, putting additional downward pressure on its value. They could also accumulate LINK close to the dip, anticipating a robust uptrend.
What’s next for the LINK Prize?
After recently trying to rise above $7.5, LINK price faced bearish pressure and dropped below the EMA20 trendline, indicating a possible shift of control towards the bears. Currently, sellers are aiming for a further downturn. At the time of writing, LINK price is trading at $7.2, down almost 2% from yesterday’s price.
The next support level to check is the 200-day exponential moving average (EMA), which is at $7.2. A break of this level could signal a rush of traders exiting their positions, potentially sending LINK price down to $6.6 and possibly falling further to retest the $5.7 support.
Should the price bounce back from $6.6 or EMA200, the bulls could gain confidence to take the price above $7.7. A successful move will push the price to test the resistance at $8.3.
The declining 20-day EMA and relative strength index (RSI) heading into oversold territory indicate upside for a near-term downside correction.