Date: Sat, Dec 28, 2024, 07:57 AM GMT

In the cryptocurrency market, the past two weeks have seen a sharp correction following bullish rallies that began in early November. Bitcoin (BTC) has retraced from its recent all-time high of $108K to its current price of $94K. This pullback has also impacted top altcoins like Chainlink (LINK), which has dropped from its recent high of $30.80 to $21, marking a 14% correction in the last 7 days and reducing its 30-day gains to 18%.

Source: Coinmarketcap

Whale Accumulation

As LINK hit a key support level during this dip, activity among large whales surged significantly. According to today’s report by @santimentfeed, Chainlink’s retracement in the second half of December has attracted attention from key active whales holding between 1M-10M LINK.

Source: @santimentfeed

These whales have accumulated 3.58M coins, valued at approximately $76.9M, in just the past three days. This accumulation trend suggests that major players are buying the dip, likely anticipating a rebound.

Is A Rebound Ahead?

In November, Chainlink (LINK) achieved a major breakout from a descending triangle pattern that had been in play since the 2021 bull run. This breakout pushed LINK to its recent high of $30.80. However, the ongoing correction has brought LINK back to a critical support zone between $18.90 and $22.90. This zone aligns with its breakout level, indicating this move could be a retest of support.

Chainlink (LINK) 1D Chart/ Coinsprobe

Currently trading at $21, Chainlink’s MACD and RSI indicators are showing signs that the bearish trend is weakening. Both metrics are approaching oversold conditions, suggesting that a rebound may be imminent if LINK holds this support zone. The presence of whale accumulation further supports the case for a potential recovery.

Technical Indicators

• MACD: Nearing its bottom, indicating diminishing bearish momentum.
• RSI: Close to oversold levels, pointing to a possible reversal.

Conclusion

The recent whale activity and the key support zone around $18.90 to $22.90 make Chainlink a crypto to watch closely in the coming days. If this support holds, a rebound towards $30 could be on the horizon. However, a breach below this zone might signal further downside.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

Also Read: Cronos (CRO) Holds Key Support Following Significant Correction: What’s Ahead?