- Chainlink price could face a bearish pullback from $27.22 resistance and seek support from the $22.7 and $20 floor.
- LINK futures open interest bounced to a $1.75 billion high, indicating the increasing conviction from derivative traders for a potential price jump.
- On-chain data shows a crypto whale bought 322,655 LINK (worth approximately $8.2 million) from the Binance exchange before the U.S. trading hours.
The Chainlink price witnessed heightened volatility during Monday’s U.S. market hours, reflected by a long-wick daily candle and only 0.55% growth. The sharp change in price movement was triggered by the clash between the broader market pullback and LINK’s growing demand among investors. Will this altcoin lose to the current market trend or hold its value to chase a higher target?
LINK Price Rises Amid Whale Accumulation and Futures Boom
LINK, the native cryptocurrency of the decentralized oracle network, has seen a notable surge from $21 to its current trading value of $25.6, representing a 22% growth. Subsequently, the asset market cap has boost to
The upswing reflects a firm conviction from buyers, as it came around a broader market pullback, which pushed Bitcoin below $117,000.
This current recovery in Chainlink price is backed by its increasing adoption and active accumulation from large investors. According to the on-chain tracker, Lookonchain, a crypto whale address ‘0x4EBD…’ withdrew 322,655 LINK (worth approximately $8.2 million) from the Binance exchange before the U.S. market hours.
Following the recent purchase, the whale’s withdrawals have reached 1,043,949 LINK (worth $24.64 million) over the past 3 days. The buying pressure reflects strong confidence from high-net-worth investors despite a market-wide correction.
Adding to the bullish note, the Open Interest (OI) data reflect a firm belief of future traders towards Chainlink’s potential price movement. According to Coinglass data, the LINK Futures OI value has taken a sharp surge from $1.22 billion to $1.75 billion in the last two days, reflecting a 43% bounce.
This increase indicates that traders are opening new positions in the market in anticipation of a major move. Typically, the rising OI with price indicates increasing long positions in the derivative market, which reflects the increasing bullish narrative for price.
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Key Support To Watch in Chainlink Price Correction
Along with broader market recovery, the recent surge in Chainlink price recovery was a combined push from multiple factors, including the partnership with Intercontinental Exchange (ICE), the launch of the LINK reserve, institutional adoption, and growing appeal.
However, from the technical perspective, the price showed a textbook example of a cup and handle pattern. This chart setup is characterized by a long U-shaped accumulation zone followed by a temporary pullback to regain bullish momentum.
On August 9th, the coin price gave a decisive breakout from the pattern neckline resistance of $20, signaling the buyers’ win over a 6-month accumulation trend. Following the breakout, the Chainlink price gained significant momentum to reach the $25 mark.
However, the 4-hour chart shows overhead selling pressure at the $26 mark, evidenced by a long-wick rejection candle. If the market selling pressure persists, the coin price could enter a post-rally pullback to stabilize its current uptrend and recuperate the exhausted bullish momentum.
The past trend of this uptrend shows a constructive pullback towards the 23.6% to 50% Fibonacci retracement level. Thus, the anticipated reversal in Chainlink price could seek support at the $22.7 and $20 floor, which coincided with the 23.6% and 32.6% FIB levels.
If the buyers manage to hold these levels, the coin price is likely to hit the $30 mark.
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