Chainlink’s price action throughout the past few days and weeks has done little to provide investors with insight into its near-term outlook, as it has mainly been consolidating between lows of $7.50 and highs of $11.00.
The cryptocurrency has seen some notable momentum throughout the past 24-hours, but it is struggling to push higher as it begins approaching the heavy resistance that sits at $11.00.
It has been rejected here on multiple occasions over the past month, with each one catalyzing far-reaching selloffs that damage its market structure.
Although analysts are torn as to whether or not LINK’s ongoing upswing will be different than those seen in recent weeks, one on-chain trend is undeniably bullish for the cryptocurrency’s outlook.
One analytics firm explained in a recent tweet that data shows whales have been accumulating massive amounts of Chainlink in recent times.
This shows that large investors are confident in its near-term outlook and may also continue providing the token with some significant buying pressure to lift it higher.
Chainlink Nears Key Resistance Level as Momentum Stalls
In the time following Chainlink’s plunge to its recent lows of $7.50, the cryptocurrency has been rapidly climbing higher, reaching monthly highs of just under $11.00 earlier today.
At the time of writing, Chainlink is trading down slightly from these highs at its current price of $10.89. This is around where it has been trading throughout the past couple of days.
So far, each visit to $11.000 over the past month has catalyzed strong rejections. Unless Bitcoin makes a serious push higher that carries the entire market with it, it is unlikely that this will change anytime soon.
On-Chain Metrics Show Whales are Rapidly Accumulating LINK
One analytics firm explained in a recent tweet that data points to a strong accumulation trend amongst large LINK wallets.
They note that this indicates large buyers are still confident in Chainlink’s outlook, despite the 50% decline from its recent highs.
“The top LINK non-exchange whales continue their gradual accumulation pattern. As seen on our chart, the top 100 non-addresses held 735.64M a year ago. Now up to 771.15M, the ~5% increase is indicative of clear whale confidence in the asset’s longevity.”
Image Courtesy of Santiment.
This trend suggests that serious upside could be in store for LINK, but it first must shatter the selling pressure that exists at $11.00.
Featured image from Unsplash. Charts from TradingView.
