Rajarshi Mitra
Independent Analyst
- LINK's price has struggled to cross over the 50-day and 100-day SMAs.
- The whales are looking to dump their holdings, which is a worrying sign.
LINK reached an all-time high of $19.35 on August 16 but then started a downward trend, reaching $7.65 on September 23. Since then, the decentralized oracle has reached around $10.85. The price has faced repeated rejections at the 100-day SMA ($11.25) and 50-day SMA ($10.80). The 50-day SMA has been particularly strong and has thwarted the price repeatedly.
LINK/USD daily chart
The MACD shows decreasing bullish momentum due to the bearish price action. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) shows that the downside is limited at the $10.25 support wall wherein 4,800 addresses had previously purchased 29 million LINK tokens. A break below this level will take LINK down to the 200-day SMA ($7.65).
LINK IOMAP
Another worrying sign for LINK is the way the whales have been behaving. As per Santiment, the top 100 non-exchange holders' total amount reached a high of 771.3 million LINK on October 7, in a three-month trailing average. Since then, it has dropped to 769.35 million LINK on October 18. If the whales are dumping their holdings, then this is a worrying sign.
Top 100 non-exchange holders
 [05.25.24, 20 Oct, 2020]-637387529215448189.png)
The flipside: Can the bulls change the narrative?
The critical thing for the buyers right now is to flip the 50-day and 100-day SMAs from resistance to support walls. As per the IOMAP, if LINK manages to break past this level, the price will reach $12. The next significant resistance in the daily chart lies at $14.
Key price levels to watch
If the bears take full control following the repeated rejections, the price will drop to the $10.25 support barrier. A break below this support stretch could take LINK down to the 200-day SMA ($7.65).
On the other hand, the bulls will need to flip the 100-day SMA ($11.25) and 50-day SMA ($10.80) from resistance to support. Following that, the price will be able to reach $12.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?