Chainlink ($LINK) Breaks Key Trendline Support: Is a Major Price Move Coming?

• Chainlink’s trendline breach raises concerns about potential market volatility.
• Whale accumulation suggests confidence despite the recent downturn in the $LINK price.

Chainlink ($LINK) has recently breached a crucial trendline that has provided steady support since July 2023. This marks the end of a nine-month period of upward momentum for the cryptocurrency. The breach has caught the attention of traders and analysts, raising concerns about $LINK’s future price movements. $LINK is currently trading at $12.69, reflecting an 8.81% drop in the past 24 hours.

Analyst Insights: Ali Charts Weighs In

Renowned technical analyst Ali Martinez has weighed in on the recent price movement, noting that the breach of the trendline could signify a turning point for Chainlink. The trendline, which had supported the cryptocurrency’s price since mid-2023, is now broken.

Ali suggests that traders closely monitor the $12.00 support level, as it could be a crucial point for $LINK’s next phase. The market’s reaction to this break will be pivotal in determining the direction for $LINK moving forward.

Whale Accumulation Signals Potential 35% Rally.

Despite the overall market decline, there have been signs of growing confidence from major holders of $LINK. A recent whale acquisition of 139,860 LINK at $14.3 has caught the attention of analysts. This purchase and the market compression within a symmetrical triangle suggest a firm conviction for a potential breakout. 

Source: TradingView

Crypto analyst Victor Del Pino says that if $LINK breaks above the key resistance at $15.68, the cryptocurrency could rally 35% toward $18.18. However, if the price fails to hold the $12.57 level. Del Pino’s analysis points to the likelihood of a positive price movement if key resistance levels are breached.

Whales Show Confidence Amid Market Decline

Despite the broader market sell-off, large investors (whales) show growing confidence in $LINK. In the last 24 hours, whales purchased over 1.10 million LINK, valued at over $20 million. This suggests that whales accumulate more $LINK, which often signals a potential price recovery. 

Coincryptonews reported last month that crypto analyst Ali Martinez noted that such whale activity is typically seen before a price pump. However, retail traders remain cautious, and their hesitancy may slow any potential short-term price increase.

Additionally, Chainlink’s Market Value to Realized Value (MVRV) metric is currently at -16.3%, indicating that most $LINK buyers hold unrealized losses. Historically, when MVRV drops below -16%, $LINK has seen significant rebounds, with previous gains of up to 312%.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.