According to data from Santiment, the biggest players in the crypto market continue to buy Chainlink (LINK) despite its falling price. Could it be a potential bullish signal for the altcoin? Let’s answer…
Altcoin whales’ interest could be a bullish catalyst for LINK
A significant recovery is expected in the price of Ethereum-based oracle platform Chainlink. While weighted sentiment, an indicator that takes into account social volume on platforms, points to a bearish trend, LINK whales continue to accumulate. A similar setup with the price rising was observed in December 2022, when LINK started a strong rally.
Altcoin whales are accumulating millions of LINK
Major wallet investors on Chainlink have started accumulating massive volumes of LINK tokens despite the recent drop in weighted sentiment. The accumulation by whales is considered a bullish sign.
According to data from Santiment, whales holding 100,000 to 1,000,000 and 1 million to 10 million LINK have been accumulating since the first week of March.
The Chainlink price crashed abruptly in the first two weeks of March, with whales continuing to “buy the dips” with their LINK wallets growing consistently.
Investors are down on LINK, is it time to take a standoff?
Weighted sentiment is a metric that calculates the average sentiment among LINK traders across various social media platforms. The metric is used to measure the community’s sentiment towards the altcoin.
The metric fell from 3.32 on March 3 to -0.62 on April 9. The decline was indicative of the growing bearish trend among LINK investors and the community on social media platforms.
What does the historical data say?
This drop in weighted sentiment is similar to December 2022, when sentiment dropped from 1.31 to -0.78 in a month. After the drop in sentiment in December, LINK price witnessed a massive rally.
Typically, whales are known to be outliers or bullish when a large percentage of the community is in a bearish trend. This is one of those times when sentiment is largely negative and whales are accumulating altcoins, suggesting that a rebound rally in LINK is likely.
What levels are expected in LINK price?
As can be seen from the daily chart below, the altcoin has recently emerged from several months of downtrend. The weighted sentiment among investors went from positive to negative in the last two weeks of December 2022, before the 56.7% increase in LINK price reached $8.39.
LINK is in a short-term uptrend and the weighted sentiment is bearish once again. Similar to December, this can be considered a harbinger of a price rally on LINK. RSI, a momentum indicator, reveals a slight bearish trend in LINK. The divergence is likely to have resulted in the LINK price dropping to $7.23.
LINK price can be expected to find support at the trendline above $6.5 if it is bearish. If the altcoin whales succeed in an upside move, there are two key resistances next, at $8.01 and $9.31, which are acting as resistances on LINK’s price chart in mid-2022. The bullish target suggests a modest 38.2% Fibonacci Retracement at $10.29. cryptocoin.comAs you follow, LINK is currently trading at $7.19, about 40% off this level.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.