LINK, the native cryptocurrency of the decentralized oracle network Chainlink, recorded a sudden surge in selling pressure during Monday’s U.S. market hours. The bearish momentum likely followed the broader market sentiment, which seems to be entering a post-rally correction. A long-tailed rejection candle in Chainlink’s daily chart reinforces the potential for a short-term pullback, but on-chain data highlights increasing whale accumulation, signaling a long-term uptrend.
Chainlink Price Gains Bullish Momentum Amid Whale Buying
Since last month, the Chainlink coin has shown a high-momentum rally, rising from $10.94 to its current trading price of $19.54, representing a 79% increase. A primary catalyst behind this surge was regulatory development in the United States, as the House of Representatives passed three highly anticipated crypto bills.
Along with general bullish sentiment, the coin price rallied amid the active accumulation of crypto whales. According to market analyst Ali Martinez, high-net-worth investors have purchased over 8 million LINK in the past month.
The sharp incline in the whale accumulation chart indicates that the big players are still confident in the asset’s future growth, despite the recent price rally.
Historically, the whale accumulation has coincided with major market reversals and rallies, signalling an opportunity for prolonged recovery.
LINK Price Hints Final Pullback Before Major Rally
Amid the recent market recovery, the Chainlink price gave a massive breakout from the $18 neckline resistance of a double-bottom pattern. Theoretically, the pattern displays a W-shaped reversal, indicating strong demand from the lower levels to support a bullish recovery.
A potential golden crossover between the 50-and-100 day exponential moving average further reinforces the bullish narrative in the market.
However, the daily candlesticks reveal rejection near the $10 level, with long upper shadows pointing to intense overhead supply. If materialized, the LINK price could plunge 4.5% to test the $18 level as a potential support level. If support holds, the coin price could chase a high of $25.
However, the potentially rally phase could face in-between the resistances at $20, followed by $22.3.
Also Read: Ethereum Profitability Hits 7-Month High as On-Chain Resistance Fades; $4k Next?
