Key Highlights:
What does the rise in whale accumulation indicate?
New wallets have withdrawn over $15M in LINK from Binance, signaling growing whale confidence and hinting at a potential technical recovery.
Is Chainlink expected to maintain its bullish momentum?
Futures markets are showing a dominance in taker buy activity and a positive sentiment rebound, suggesting that traders are reinforcing LINK’s recovery towards a potential breakout above $27.
Recent whale data reveals that three newly created wallets have collectively withdrawn over 825,000 Chainlink (LINK) tokens, valued at around $15 million, from Binance.
This movement of tokens indicates that large investors are transferring their holdings off exchanges in anticipation of higher prices.
In the past, such withdrawals have been associated with accumulation phases rather than distribution.
This accumulation coincides with an overall increase in LINK’s network engagement, which typically precedes significant price rallies.
However, traders are proceeding with caution as LINK is still within a consolidation phase awaiting confirmation of a breakout.
Source: TradingView
Will LINK face a key test at $20?
After a strong rebound from the $16.5 support level within a descending channel, LINK is potentially on track for a bullish reversal.
The next target is the $20.02 resistance level, and a breakout above this point could lead to further gains towards $23.72 and $27.89, indicating a possible recovery pattern after weeks of lower highs.
Recent daily candles suggest that bullish momentum is gradually outweighing selling pressure.
However, a rejection at $20 may prolong the consolidation phase before a decisive breakout attempt.
Social dominance on the rise
According to Santiment data, Chainlink’s social dominance has increased to 0.74%, indicating a rise in market discussions related to LINK.
This upward trend suggests a sustained increase in community interest rather than short-lived hype.
Historically, a rise in social dominance during accumulation phases strengthens bullish scenarios as it drives liquidity inflows through awareness and engagement.
The correlation between this recovery and whale accumulation suggests a growing confidence among both retail and institutional investors.
The consistent increase in visibility supports the notion that LINK’s momentum is gaining strength after a period of subdued attention.
Trader sentiment leaning towards upside
Data on the 90-day Cumulative Volume Delta (CVD) confirms a strong taker buy dominance in futures markets, indicating more market buys than sells.
This suggests that traders are positioning themselves for further gains, aligning with the ongoing accumulation trend.
The balance between spot and derivatives activity reinforces the bullish case for LINK’s medium-term trajectory.
Moreover, the increase in Open Interest indicates a return of capital to the LINK market after a period of decline.
Will LINK break above $27?
The combination of whale accumulation, sentiment recovery, and strong buy-side dominance in derivatives suggests a robust bullish setup for LINK.
These factors coming together indicate that LINK’s momentum is not just speculative but backed by a solid foundation.
With whales accumulating and traders showing confidence, LINK is primed to surpass the $27 mark, signaling the beginning of a new upward trend in its market cycle.
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