Chainlink (LINK) price hovers, whale activity is frequent
In the past week, the price of Chainlink (#LINK ) fluctuated narrowly between $8.5 and $9.9, with $9.9 being a clear upward resistance level. As of the time of writing, LINK is priced at $9.2, showing a slight increase of 1.23% on the daily chart. However, trading volume has significantly dropped by 32% to $649 million, indicating a noticeable decline in market participation. Against the backdrop of a slowing market, whales are seizing the opportunity to reposition themselves and observe the next market trend.
Whale activity is frequent, wallet restructuring draws attention
On-chain data shows that a whale created 10 new wallets in the past week and withdrew 1.62 million LINK, worth about $14.8 million. These tokens were transferred to a deposit address associated with Flowdesk. It is worth noting that these LINK were not newly purchased but seem more like whales restructuring their wallets. Generally, such actions are neither buying nor selling, having limited short-term impact on prices, but the market will pay attention to the potential signals of these large transactions.
At the same time, average spot order data shows that in the past seven days, whales have placed large orders near $9.2 on five days. This indicates that large holders are defending this price level, possibly preparing for the next wave of market movements.
Exchange circulation has decreased, increasing scarcity.
In addition to this giant whale, other large institutions are also increasing their holdings of LINK. The exchange supply ratio (ESR) has declined for two consecutive months, currently falling to 0.127, which is a low for this year. This means that most tokens have flowed out of exchanges, reducing supply and thereby increasing market scarcity. Traditionally, this situation often benefits prices.
Price trend and technical indicator analysis
Currently, LINK shows a moderate upward trend, with prices hovering around $9. The stochastic relative strength index (Stochastic RSI) has jumped from 26 to 44 over the past two days, indicating increased buying power. If the bulls can push this indicator above 50 and maintain stable demand, LINK is expected to break through $9.9 and challenge the $10 mark.
However, sellers remain active, especially retail selling. The net flow on exchanges has turned positive to 101,000, which also shows that selling pressure exists. Therefore, if sellers remain active, prices may continue to consolidate, with support at $8.5 and resistance still at $9.9.
Summary
LINK's price has fluctuated narrowly this week, with the main trading range between $8.5 and $9.2.
Whales have created new wallets and moved 1.62 million LINK, indicating frequent movements by large holders.
The decline in exchange circulation and increased scarcity provide support for potential upward movements.
Technical indicators show increased buying power, but selling pressure remains, suggesting that the short-term market may be dominated by consolidation.
Overall, LINK is accumulating strength, and it's crucial to observe the dynamics of whale positioning and retail selling. The next breakout may still require waiting for more signals.