Chainlink (LINK) has been one of the top 20 gainers in the past 24 hours, despite mixed signals from technical indicators.
The BBTrend indicator, which has been in a positive trend since November 25, has weakened significantly. However, if it breaks through the current resistance level, LINK could surge as much as 42% to $30.
Chainlink Whales Are Not Accumulating More LINK
The amount of LINK held by “whales” has dropped significantly over the past two weeks, signaling a shift in market sentiment.
The number of wallets holding between 100,000 and 1,000,000 LINK has dropped from a peak of 558 on November 19 to 533 currently. This suggests that large investors may be taking profits or reallocating their portfolios.
It is important to monitor the behavior of whales, as they can have a major impact on price and market sentiment. The drop from 558 to 533 wallets in this segment indicates a distribution phase, where large investors are reducing their positions. This accumulation downtrend could put downward pressure on LINK in the short term.
LINK BBTrend at multi-week low
Chainlink’s BBTrend (Bollinger Bands Trend) indicator has declined significantly, from a high of 18.2 on November 26 to just 0.44 currently, although it has remained in positive territory since November 25.
The BBTrend indicator helps determine trend strength and reversal potential by measuring price movements relative to the Bollinger Bands. If BBTrend moves into negative territory, this could signal a trend reversal and increased selling pressure on LINK.
When BBTrend falls into negative territory, it usually indicates that the price is moving below the middle Bollinger band, indicating bearish momentum and the possibility of further declines in the future.
LINK Price Prediction: Potential 42% Upside
LINK recently made an attempt to break above $22, a level not reached since 2022, indicating significant upside potential.
If successful in the next attempt, the cryptocurrency could target $25 before moving towards $30. This would be the highest price since 2021, representing a 42% increase from the current level.
Read more: Bitcoin to Surge to $150K by Early 2025
On the other hand, if the bullish momentum fails to be sustained, the LINK price could face a downside correction. In this scenario, LINK price could test the first support level at $16.18, and could potentially drop further to $13.8 if this support level fails to hold.
