LINK price faces resistance as whale activity and market sentiment shift
LINK faces resistance at $27.18 and $30.81; support holds at $25.51
Chainlink (LINK) has encountered strong resistance near the $27.18 and $30.81 levels, reflecting a challenging market environment. Following a sharp surge, LINK's price has consolidated around $24.89, showing signs of weakening momentum but holding above key support levels.
On-chain data revealed a sharp decline in whale activity, with wallets holding between 100,000 and 1,000,000 LINK dropping from 558 in November to 515 in mid-December. This decline suggests reduced confidence among major holders, potentially adding downward pressure on the price.
Chainlink ( Nov 2024 - Dec 2024) Source: Trading View
Technical analysis signals resistance and support levels
Chainlink (LINK) is currently consolidating around $24.89, showing a modest recovery of 0.21%. The attached chart highlights significant levels of resistance and support that could dictate the next price movements. On the upside, $27.18 and $30.81 are critical resistance levels. Breaking above these zones could signal a renewed bullish trend, attracting further buying interest. On the downside, immediate support lies at $25.51, with stronger support at $22.38. The long-term support zone is observed at $19.85, aligning with the 200-day EMA, which serves as a key structural barrier.
The price action shows bearish sentiment as LINK hovers near the 50-day EMA. However, a breakout above $27.18 could provide a signal of reversal and momentum shift. Conversely, failure to maintain above $22.38 might lead to further selling pressure. Traders should keep a close watch on whale activity and market sentiment as these factors could heavily influence LINK’s short-term trajectory. Maintaining stability above $25.51 is crucial for the cryptocurrency to avoid deeper corrections.
Despite current market hesitations, some analysts remain optimistic due to renewed whale activity. A significant whale recently withdrew 529,999 LINK worth $15.5 million from Binance, hinting at potential accumulation for long-term holding. Market watchers believe a sustained price above $30 could trigger a rally toward $36, contingent on continued whale support and broader crypto market stability.
Previously, we discussed Chainlink's breakout above its long-term falling trend and the establishment of key support at $18.70, signaling a potential bullish shift in market sentiment. These developments remain central to LINK's performance.
