Chainlink, a major player in the smart contracts industry, has recently witnessed an increase in purchasing activity, which could indicate a significant market shift.
Chainlink Whale Made a Large Purchase
Following the price drop, a significant transaction of $8.9 million was observed with the purchase of 601,949 LINK at an average price of $14.81.
Distributing this purchase across three new wallets may indicate a strategic move rather than a casual trade.
The Chainlink chart reveals a market on the verge of an interesting development. LINK is currently in contact with the 50-day Exponential Moving Average (EMA), an indicator that is often considered a demarcation line between bullish and bearish zones.
While a definitive breakout may encourage the bulls, failure to exceed it may mobilize the bears.
Currently, LINK is exhibiting signs of consolidation and is gradually charting a sideways moving path with no clear long-term direction, which investors colloquially refer to as a “crab” market.
This consolidation phase is characterized by the asset oscillating around a central price point, which in LINK's case is currently the 50 EMA.
A growth scenario for LINK could include maintaining support at the 50 EMA, currently around $14.57, before a strong increase in volume and price.
If this happens, this level will be seen as successfully defended and higher levels can be tested.
At the time of writing this article, LINK was trading at $15.51.
*This is not investment advice.