Whale interest is a bullish indicator and LINK is sweeping the whales to their side. According to crypto whale tracker WhaleStats, the token is part of the top 10 cryptocurrencies that whales have on their wallets.
Here’s a quick overview of LINK:
- In the short-term, the 4-hour chart of the market shows signs of bullishness
- Downturns are still a possibility, thus caution is warranted
However, the token’s value has not yet reflected this. According to data by Coingecko, LINK is trading at $6.62, down 11.3% in the last seven days.
Data from CryptoQuant suggests that LINK reserves on exchanges are low, while estimates from exchange netflow suggest users are depositing LINK tokens. Is this a precursor to much greater market turmoil?
Chart: TradingView
How Optimistic Should Investors Be?
The charts demonstrate significant bullishness with a few explanations why, despite the fact that market forces are bearish as of writing.
The token’s RSI values are oversold on a 4-hour timeframe, indicating that a market reversal might occur over the next few days.
JUST IN: $LINK @chainlink now on top 10 purchased tokens among 1000 biggest #ETH whales in the last 24hrs 🐳
We’ve also got $BAT, $OMG & $CHZ on the list 👀
Whale leaderboard: https://t.co/jFn1zIwOBt#LINK #whalestats #babywhale #BBW pic.twitter.com/HYX2DFTJzI
— WhaleStats (tracking crypto whales) (@WhaleStats) December 10, 2022
Previous price action has also formed a harmonic, which increases the likelihood of a bullish pullback. A bullish order block that emerged on November 28 can potentially provide support for a potential price increase.
However, on a daily timetable, the situation remains unclear. The RSI values are neutral, followed by the formation of a Bollinger band crunch point. This suggests that a continuation or reversal of the current price movement will occur within the next days.
Due Diligence, The Name Of The Game
The negative order block established on November 7 will also impede the impacts of a potential bullish reversal, limiting LINK bulls to the $7.190 resistance level and not higher.
Although LINK’s risk barometer is quite modest, investors and traders should be cautious still. A spike in exchange net deposits may signal that individuals are preparing to sell their tokens, possibly pushing the price past $6.62.
Nonetheless, if the net deposits have no effect on the price, a market-price long position with a stop loss at $6.4146 will earn some returns.
LINK total market cap at $3.3 billion on the daily chart | Featured image: Mashed, Chart: TradingView.com