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Chainlink (LINK) price has increased more than 20% in the past 24 hours, reaching a three-year high. The recent outbreak pushed LINK to around $28, breaking through key resistance levels, signaling a new bullish momentum.
However, although the price is rising significantly, whale accumulation remains steady, and LINK’s RSI shows that the uptrend may face challenges. Whether LINK can maintain its momentum will be determined by a test of strong support around $26.9 in the short term.
LINK Whales Keep Their Distance Despite Rising Prices
Despite the recent price surge, fueled by Trump’s World Liberty Financial, the number of whales accumulating LINK has remained stable. Currently, there are 524 wallets holding between 100,000 and 1 million LINK, this number is almost unchanged from last week when it was 525 wallets.
This stabilization comes after a significant decline in whale activity, which has been steadily decreasing since November 19, when there were 558 wallets holding the same amount of LINK.
Monitoring whale activity is important because these large holders can significantly influence market trends. Their consistent accumulation or distribution often heralds large price movements. The recent stabilization in whale numbers, after weeks of decline, may indicate a change in market sentiment.
While the pullback suggests falling confidence or profit-taking among whales, the current pause could hint at the potential for price stabilization or a short-term reversal.
Chainlink’s RSI Testing To Surpass Level 70
Chainlink’s RSI is now 66, down from briefly surpassing 70. This marks a significant recovery from 32 on December 9, showing strong upward momentum over the past week.
However, the failure to sustain RSI above 70 marks a potential resistance level in the current uptrend, raising questions about the strength of the rally.
RSI, or Relative Strength Index, measures the speed and magnitude of price changes to gauge overbought or oversold conditions. Values above 70 typically indicate overbought levels, suggesting that the asset may be under selling pressure, while values below 30 signal oversold conditions, often associated with potential buying opportunities.
For Chainlink, level 70 appears to be an important barrier; If RSI can hold above this level for a few days, the price could continue to climb. However, the recent inability to sustain above the 70 level suggests that the current uptrend may lose momentum, leading to the possibility of near-term price stabilization or a correction.
LINK Price Forecast: Can It Hit $35 Next?
The recent rise in LINK price to around $28 marks the highest price since January 2022. If the current uptrend reverses, the first level of strong support lies around $26.9.
If it fails to hold, LINK price could fall further to $22.40 or even $19, levels that would be a significant retracement from recent gains. These support levels are important in preventing a deeper correction as the market tests the strength of the current rally.
On the other hand, if the uptrend continues, LINK price is now less than 8% away from reclaiming the $30 mark, a price level it has not reached since November 2021.
A break above resistance at $28 and $29 could pave the way for further upside, with $35 as the next potential target.
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