Rich investors are accumulating Chainlink’s native token (LINK/USD). The data, according to the Santiment analytics, show that the number of LINK whales is now at the highest level in five years. Accordingly, whales holding $700,000 or more worth of LINK tokens is 458. The rise in the whale addresses happened as the price touched $7. Does that point that the price level is attractive?
Well, Chainlink has been trading within tight ranges. The cryptocurrency has been oscillating within $7 for the past week since getting rejected at the $8 resistance. However, LINK has also been defending a support zone at $6. That suggests whales see a potential opportunity at or slightly above $6.
Fundamentally, LINK has maintained stability since announcing Chainlink 2.0 in June. The milestone brings key changes, including staking on the platform. Whales could also be reading from the script of Chainlink being selected for SWIFT’s token infrastructure.
Chainlink is growing too. Earlier this month, Chainlink Labs announced that it had expanded to more than 1500 projects on 15 blockchains in the third quarter. As the growth occurred, Eric Schmidt, former Google CEO, expressed his admiration for Chainlink. In his latest comments, Schmidt says that Chainlink has got the architecture right to grow. Investors could see an opportunity in LINK before an explosive move occurs.
LINK retests a trendline after a bearish breakout
Source – TradingView
On the daily chart, LINK price is mixed. The cryptocurrency crashed below a short-term trendline recently. The token has recovered slightly, with price action showing it is retesting the trendline. The price has also been rejected by the 50-day MA, as shown by the bearish tailed bars.
Turning to the MACD indicator, LINK is slightly bullish. The indicator shows that momentum has slightly improved, though the token remains in the bear zone.
Which way, LINK?
It is not yet time to buy LINK. There is a weak momentum, although the token is maintaining stability. However, a long-term investor should be enticed by the $6 price bottom and buy at any zone above it.