- 12 addresses bought LINK worth $17.5 million.
- The price dropped but a recovery could be imminent.
Though Chainlink [LINK] has been affected by the market drawdown, the cryptocurrency seems to be making its mark as one of the projects with great long-term potential. This was evident based on a new revelation by Lookonchain.
According to Lookonchain, 12 new wallets possibly belonging to an institution accumulated LINK. Details from the post showed that the total LINK accumulated was worth $17.5 million.
However, that was not the only thing that happened with the transaction.
A fall is not the end
The buyer also sent the tokens out of Binance. Transactions signal a sentiment of trust in the long-term performance of a cryptocurrency.
We noticed that a whale/institution accumulated $LINK.
12 fresh wallets (possibly belonging to the same person) withdrew 1,287,492 $LINK($17.5M) from #Binance in the last 3 days.
Address:
0xfca9eD717E3878DdE14D3B10F49a751368A66384
0x7cc6388B25146B4D05270098Bfc8A587Ad5Db24B… pic.twitter.com/hCFVE0Ofer— Lookonchain (@lookonchain) January 7, 2024
Despite the bullish sentiment around Chainlink, its value has decreased in the last 24 hours. At press time, LINK changed hands at $13.52. This price represented a 1.24% decrease within said period.
However, according to CoinMarketCap’s data obtained by AMBCrypto, the slight decrease was a signal of LINK’s strength.
This conclusion was because most altcoins, close to Chainlink’s market cap, nosedived much harder. So, it was not surprising that analyst Ali Martinez posted a bullish thesis for LINK.
Martinez considered the LINK/USD 12-hour chart. According to his findings, LINK might rebound toward $15.20 or $17.30. The analyst concluded that the Tom DeMark (TD) Sequential presented a buying opportunity.
#Chainlink | The TD Sequential presents a buy signal on the 12-hour chart as #LINK trades around the lower boundary of a parallel channel. If validated, $LINK could rebound toward $15.2 or $17.3! pic.twitter.com/FSDJOHGIKv
— Ali (@ali_charts) January 7, 2024
The TD Sequential is a technical tool designed to identify a potential price reversal. In most cases, the reversal happens due to trend exhaustion.
In Chainlink’s situation, sellers had become fatigued. So, this offered buyers the opportunity to capitalize on a potential uptrend.
LINK holders may soon reap some gains
Furthermore, AMBCrypto considered it necessary to assess the growth of the Chainlink network. To do this, we looked at the number of LINK holders since the 1st of December 2023.
Santiment’s on-chain data showed that the LINK holder count, as of then, was 699,710. However, press time data showed that the number had grown to 711,000.
This increase was a testament to the initial inference that the sentiment around the cryptocurrency was bullish.
Source: Santiment
Regarding the price, the Aroon indicator showed that LINK’s possible rise to $17 might take a while. As of this writing, the Aroon Up (orange) was 0%. On the other hand, the Aroon Down (blue) was 85.71%.
Read Chainlink’s [LINK] Price Prediction 2024-2025
Thus, LINK’s momentum showed bearish signals at press time. However, the RSI reading had begun to rise, sitting at 44.91 at press time. Should the indicator continue to move upward, then LINK might hit $14.
Source: TradingView
Furthermore, if the RSI flips the 50.00 midpoint, the price of LINK might reach $15. This could also foreshadow a higher value for the cryptocurrency.