LINK Shows Strong Signals Despite Post-Rally Correction, Whale Investors Continue Adding To Stockpiles
Despite facing a correction after its recent price rally LINK is showing strong technical signals while whale investors continue to add to their stockpiles.
Last week LINK added 42% over the course of five days topping out for the month at $11.90. Since then, the token saw a swift downturn and has made a modest recovery. At the time of writing LINK is trading hands at $10.88 and is down 0.38%. The total number of LINK addresses also surpassed 800,000 on October 14, Glassnode data shows. The increased number of wallets suggest more players may be investing in LINK.
The token’s bull run was likely catalyzed by numerous DeFi projects announcing plans to integrate with Chainlink’s oracle network. The network allows smart contracts to access off-chain data without sacraficing decentralization. Popular projects including Blockstack and Fetch.ai named Chainlink’s oracle network as their preferred product proceeding LINK’s price pump.
LINK’s rise also came after several mainstream exchanges listed the token including OKCoin, Bitstamp and BitMEX launching LINK-USDT perpetual swap contracts.
Since reaching its near $12 highs LINK has retracted, however the coin is still generating buzz among crypto commentators and analysts say there are strong metrics supporting the token. One commentator noted in a tweet that even with the recent price drop LINK still sits above its exponential moving average, a horizontal at $10.75 and the point of control as the per volume profile. LINK futures open interest is also increasing as the funding rate of the market decreases, a strong sign for the asset.
However even during its pump LINK never broke through resistance at $12.00. The token has also since fallen back below $11.00 where it has been historically rejected triggering smaller sell-offs. Regardless large LINK wallets are continuing to accumulate the token even after the downturn following its upward swing, according to data from Santiment.
“The top LINK non-exchange whales continue their gradual accumulation pattern. As seen on our chart, the top 100 non-addresses held 735.64M a year ago. Now up to 771.15M, the ~5% increase is indicative of clear whale confidence in the asset’s longevity,” Santiment wrote in a tweet.
Earlier on Wednesday, October 14 Glassnode data showed that LINK median transaction volume reached a 15-month high of $1,179 which could be a reflection of these whale wallets. This kind of investment is a bullish signal for LINK, but the coin will need to break past its resistance at $11.00 to see further upside.
By Emily Mason