- Chainlink (LINK) has surged by a remarkable 125% in just 25 days, rising from below $7.40 to approximately $14.60.
- The surge is attributed to significant accumulation by the 200 largest LINK wallets, adding 40.18 million LINK tokens to their holdings around October 17.
Chainlink (LINK) has witnessed an astonishing price surge, catapulting from under $7.40 to around $14.60, marking an impressive 125% increase in just 25 days. This remarkable rally can be attributed to a noteworthy development – the accumulation of LINK tokens by the 200 largest LINK wallets.
Around October 17, these substantial holders collectively added a staggering 40.18 million LINK tokens to their already significant holdings. This influx of buying pressure from prominent investors likely played a pivotal role in driving LINK’s price upwards.
Analyzing the daily chart provides further insights into Chainlink’s price action. Currently, LINK is consolidating around $14.60, positioned above both the 50- and 100-day moving averages. This positioning indicates a robust bullish trend. The moving averages are also aligned in a bullish formation, with the price comfortably above them, signifying positive market sentiment.
With the substantial holdings by the largest wallets still intact, there exists a foundation for potential sustained price support. However, traders should remain vigilant and monitor for any signs of a trend shift, such as a break below the trendline or the moving averages, which could indicate a possible price reversal.
Caution Amid Decreasing Volume
As the trading volume decreases, traders and investors must exercise caution. Reduced volume can signal a decrease in momentum, potentially leading to price stabilization or a reversal. The actions of these major wallet holders will be crucial – if they continue to hold or accumulate, they could continue to influence the price positively. However, if they start selling off their holdings, it could result in a market shift.
In the immediate future, if LINK manages to maintain its position above the critical moving averages and the ascending trendline, the bullish trend could persist. On the other hand, a break below these key indicators could indicate a short-term reversal in the price trend.
