LINK accumulation occurs as long-term holders and institutional wallets withdraw large numbers of coins from Binance. According to Lookonchain, a whale with a special interest in LINK is collecting tokens on dips. Crypto analyst Valdrin Tahiri evaluates the impact of the developments on the altcoin price.
A corporate whale shows special interest in LINK
There is interesting news today in the form of an institution with 81 wallets that has accumulated $4.2 million in LINK. The wallets were created on September 15 and withdrawn from Binance three days later. They have since accumulated $56 million in LINK. On-chain analytics platform Lookonchain announced the development as follows.
The institution with 81 fresh wallets accumulated $575,632 $LINK ($4.2M) again after the $LINK price dropped today.
And the institution has accumulated a total of 7.66M $LINK ($56M) from #Binance since Sept 19.
Details: https://t.co/hSdkoncNgZhttps://t.co/dtqUHhsFkp pic.twitter.com/ETOvqeqRVS
— Lookonchain (@lookonchain) October 10, 2023
As you follow on Kriptokoin.com, the Chainlink accumulation of long-term owners also attracts attention. Six long-term holders accumulated $2.4 million on Chainlink from Binance today. These accounts all hold more than $800,000 in LINK. Additionally, they do not trade any other altcoins other than LINK.
LINK makes its fifth breakout attempt
The weekly chart shows that LINK has been following a descending resistance trend line since June 2022. During this time, he made five exit attempts (red icons), all of which were unsuccessful. The most recent one happened two weeks ago. The altcoin price diverged below the $5.60 horizontal support area before reaching the descending resistance trend line. Then he took it back. It formed a higher low (green icon) in August. It also confirmed it as support before continuing its rise. Meanwhile, the weekly RSI is in an uptrend. The indicator is increasing and is above 50 (green circle). Therefore, both are signs of an uptrend.
LINK Daily Chart. Source: TradingViewLINK price prediction: When will the correction end for the altcoin?
The daily chart shows that LINK price formed a long upper wick on October 8. Additionally, it was followed up with a bearish candlestick the next day. This wiped out all previous gains in October. This led to a low of $7.13.
Elliot Wave theory and Fib levels on the daily time frame suggest that the price will soon reach a bottom. The most likely count indicates that the ongoing correction is part of the ABC structure. If so, the altcoin price is currently in wave C of this correction. Giving the A:C waves a 1:1 ratio would lead to a low of $6.95. The $6.95 area is also important as it is the 0.5 Fib retracement support level of the entire upward move. This confluence makes it likely that the price will reach a bottom there before bouncing towards the long-term resistance trend line at $8.10, 11% above the current price. It is also compatible with Chainlink accumulation from long-term holders.
LINK Daily Chart. Source: TradingViewDespite this bullish LINK price prediction, a close below the $6.95 horizontal support area would mean the trend is still bearish. In this case, a 13% decline to the next support at $6.35 is possible for the altcoin.
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