Chainlink's price is hovering around the critical $12 area, closely watched by the crypto community. Major investors are accumulating LINK in their wallets, hinting at a potential bullish movement amid strong spot demand. Could this whale activity signal an imminent price surge? A market scenario under close scrutiny.
On-chain data reveals a clear trend: large LINK holders are actively accumulating since the price retested the $12 support level. This whale behavior contrasts sharply with the generally cautious sentiment in the current crypto market. Addresses holding between 100,000 and 1 million LINK tokens have significantly increased their positions over the past few weeks.
As Ben points out on X, smart money is accumulating at these levels while LINK ETFs have experienced zero outflows. This is therefore an accumulation phase before a new bullish rally rather than distribution.
And this confidence stems from the fact that Chainlink dominates across all sectors: AI, RWA, interoperability… Chainlink is becoming the next crypto and on-chain decentralized finance giant.
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From a technical perspective, the $12 level represents a major psychological and structural support for Chainlink. This price corresponds to the bottom of the range and historical closes of several daily candles. This indicates that the price struggles to close below, and therefore traders are accumulating and protecting these levels.
The 4-hour chart shows several order blocks at $12 confirming this demand zone. Furthermore, a bearish order block has formed in the middle of the range around $12.9, which represents a target to overcome.
Technical indicators show mixed signals. The RSI without divergence and this bearish order block could push LINK into consolidation for several days before being able to break through $12.9.
Perhaps the most revealing element in this situation remains the remarkable absorption of selling pressure by spot demand. Unlike capitulation phases where selling overwhelms the market, current flows show a balance where every seller finds a buyer. Exchanges even report net LINK withdrawals to cold wallets, reducing available supply on platforms.
Moreover, as Artus points out, Chainlink was one of the only cryptos to outperform the market during the bearish phases of 2019. So could Chainlink achieve the same feat in the coming months?
The next trading sessions will be decisive. If support holds and whales continue accumulating, LINK could begin a gradual recovery toward $15. Conversely, a loss of the $12 level would invalidate this scenario and likely trigger cascading stop-losses.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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