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Whale activity raises questions as Chainlink tests critical resistance levels near $25.
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As Chainlink navigates its pivotal price zone, market dynamics suggest a robust interest from long-term investors.
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“Whale movements may indicate upcoming volatility, with traders eager to gauge LINK’s stability at these levels,” remarked a COINOTAG analyst.
Analyzing Chainlink’s critical resistance levels and whale movements reveals key insights for investors as LINK hovers around $25.
Analyzing price momentum and resistance levels
At the time of writing, Chainlink was testing a crucial resistance zone between $24–$25, a level that has acted as a significant barrier in previous rallies. The MACD suggests that bullish momentum persists, though it appears to be losing strength.
Additionally, the ADX value of 41.52 highlights the strength of the current trend. If LINK can decisively break through this resistance, the next target is $30.99, a key psychological and technical level.
However, failure to maintain this momentum could result in a pullback toward $22, a zone of strong support.
Source: TradingView
LINK address activity reveals mixed trends
On-chain metrics show contrasting trends in LINK’s address activity. New addresses have increased by 1.94%, indicating fresh interest. However, active addresses have fallen by 1.39%, suggesting slightly reduced engagement.
Additionally, zero-balance addresses have dropped significantly by 13.87%. This shift of LINK holdings to wallets indicates confidence among long-term holders. These mixed signals reveal growing interest but also highlight uncertainties about the asset’s short-term trajectory.
Source: IntoTheBlock
Transaction count reflects growing market activity
Transaction activity has seen steady growth, further reinforcing the narrative of increased market engagement. Over the past 24 hours, the transaction count rose by 0.69%, reaching 12.11K transactions. This uptick points to a growing number of participants actively adjusting their positions.
Whether these movements are in response to the whale withdrawals or the broader market environment remains unclear. However, the rise in transaction volume suggests a market preparing for potentially significant price action.
Source: CryptoQuant
LINK exchange reserves show lower selling pressure
Exchange reserves for LINK have declined slightly by 0.17% over the past week, now standing at 163.1489M LINK. This drop aligns with whale withdrawals and suggests a reduction in immediate selling pressure as large quantities of LINK move off exchanges.
Reduced reserves often signal stronger holder sentiment, as coins exiting exchanges typically indicate long-term storage. This trend supports bullish sentiment but leaves room for caution as liquidity diminishes.
Source: CryptoQuant
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The recent whale withdrawals and price resistance tests place Chainlink in a decisive position. If LINK can sustain its momentum and break through the critical resistance zone, a bullish breakout is highly probable.
However, should momentum falter, a retracement toward lower support levels appears inevitable. For now, LINK’s ability to clear the $25 resistance will determine its short-term market direction.
