Chainlink: Can $19 mln in whale buys help LINK break out?

After bouncing back from a slip to $11 days ago, Chainlink has traded within a well-defined consolidation range. At press time, LINK traded at $12.65, down 0.22% on the daily charts, with the moving averages converging. 

This reduced volatility has created a perfect buying opportunity for investors, especially whales. 

Chainlink whales add $19 million worth of LINK

While Chainlink’s performance remained minimal, whale activity remained highly elevated. According to CryptoQuant data, the Spot Average Order Size metric showed large whale orders for seven consecutive days. 

As noted by on-chain monitors, these whale orders have mostly been on the demand side, especially as the market cooled. 

According to Onchain Lens, a whale has purchased Chainlink [LINK] for two consecutive days. On the 22nd of December, the whale purchased 360,551 LINK, worth $4.53M, from Binance.

After the recent acquisition, this whale wallet now holds 806,327 LINK valued at $10.17 million. In addition to this whale, Lookonchain also observed a series of whales accumulating addresses over the past three days. 

Notably, 11 newly created wallets have purchased 1.567 million LINK, worth $19.8 million, from Binance. 

Often, whales’ accumulation during sideways movement has signaled quiet confidence with the market, anticipating another leg up. 

In fact, exchange activities have also echoed this accumulation trend. Exchange netflow has declined significantly since the unlocking of 11 million LINK. 

According to CryptoQuant, Exchange Netflow has remained negative for three consecutive days. At press time, Netflow was -384.9k LINK, indicating increased exchange outflows. 

Historically, increased exchange outflows have reduced downward pressure, thus accelerating upward momentum. Often, such a setup has preceded higher prices.

Is a breakout in sight for LINK?

Chainlink showed relative strength over the past three days, as whales jumped into the market to defend $12. As such, whales have effectively absorbed the rising selling pressure from elsewhere.

As a result, the altcoin jumped above the short-term MA9, indicating strong short-term upward momentum.

These market conditions suggested that buyers have gained sufficient strength and control to impact price movements positively.

However, Chainlink’s Stochastoc OTT has remained below its K, which signaled a weakened overall market structure.

At press time, OTT held around 1043, while the signal sat above it at 1042, signaling range-bound, depressed market conditions.

If the buyer’s momentum holds, LINK is well-positioned to bounce off the current range. Thus, continued whale accumulation could push LINK towards the $14.5 resistance.

However, this upside potential is only valid if the altcoin holds above MA9 at $12.6. A failure to have this level could send the altcoin back to $11.8.

Final Thoughts

• Chainlink whales have purchased 1.567 million LINK, worth $19.8 million.
• LINK is stuck within a narrow range and could break out towards $14.5 if the $12.6 levels hold.