Ethereum, Chainlink, and Ren whales go into buying frenzy as these tokens suffer a steep correction


  • The amount of ETH, LINK, and REN tokens held by non-exchange addresses has increased significantly over the past few weeks. 
  • Most altcoins suffered a significant pullback in the past 24 hours.

Today, the crypto market saw a notable pullback, dipping from a $398.6 billion market capitalization to a low of $386 billion in just three hours. Many altcoins have already bounced back up, with Bitcoin staying above $13,000.  

Accumulation of Tokens Chart

eth price

This trend is not new and has been observed since May 27, 2020. REN had a massive jump from 379 million coins on non-exchange addresses on October 5 to 410 million only two days later. The uptrend continues for all three coins, indicating that declining prices are viewed as an excellent opportunity to buy-in. 

Ethereum had to retrace to $390 before the final rally to $500

In our last article, we talked about Ethereum, stating that the digital asset was poised for a small retrace towards $390 before resuming the uptrend. The smart-contracts giant broke out of an ascending triangle on the daily chart on October 22.

ETH/USD daily chart

eth price

The price of Ethereum then slipped towards $390 to re-test the previous resistance as a support level. Although the price did pierce through it, it has managed to recover with ETH trading at $394 currently and still targeting $500 in the long-term. 

Chainlink needs to break this crucial resistance level to target $18

LINK is currently trading at $11.82 after a slight rejection from the upper trendline of an ascending parallel channel formed on the daily chart. The 100-SMA is acting as a strong support level for now.

LINK/USD daily chart

link price

The MACD has remained bullish since September 26 and was gaining strength in the past two days. The most critical resistance level is established at $13, where the upper trendline is located. A breakout above this point can drive the price of LINK up to $18.

LINK's current rejection could push it to $10

On the other hand, the upper trendline of the ascending parallel channel has rejected LINK's price two times in a row on October 24 and 25. If the 50-SMA fails to hold, the price can easily slip towards the support level at $10.

LINK IOMAP Chart

link price

The In/Out of the Money Around Price seems to confirm this theory as it shows very little support to the downside until the area between $10.03 and $10.39, which has around 33.3 million LINK in volume. 

REN bullish breakout seems weak

On the daily chart, the price of REN established an ascending triangle pattern. On October 11, the digital asset had a massive 38% breakout but got no continuation. One week later, the price fell towards $0.33 to re-test the resistance level as a support level.

REN/USD daily chart

ren price

Unfortunately, the support level didn't hold, and REN's price slipped below it and the lower trendline of the ascending triangle but managed to defend the 50-SMA and the 100-SMA. A bearish breakout below both of these SMAs can drive the price of REN down to $0.17.

REN facing very little resistance to the upside

Nonetheless, considering the heavy buying pressure the digital asset is experiencing, and how there is very little resistance to the upside, REN can easily continue with its uptrend. It needs to break $0.33 in the short-term.

REN IOMAP Chart

ren price

The In/Out of the Money Around Price chart shows no opposition well until $0.34, which is perhaps the most notable resistance area but still relatively weak compared to the support below. A breakout above $0.33 can drive REN towards $0.35. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP Price Forecast: Ripple could be on the verge of a breakout to $0.40

After losing more than 60% of its value in December 2020, XRP has been trading sideways without much action throughout 2021. The SEC has sued Ripple alleging that it conducted illegal sales of XRP which they consider a security.

More Ripple News

Bitcoin price shows ambiguity as a 30% move is underway according to technicals

Bitcoin has been trading inside a tight range after establishing a new all-time high at $41,950. The digital asset plummeted down to $30,420 and then formed a lower high at $40,100 followed by what seems to be a higher low at $33,850. 

More Bitcoin News

XLM Price Prediction: Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. Let’s analyze some of the most important indicators to understand the most likely scenario.

More Stellar Lumens News

Ethereum Price Analysis: ETH bulls facing an uphill task inside short-term triangle

ETH/USD steps back from short-term resistance while declining to $1,256 during early Tuesday. In addition to easing from the immediate triangle’s upper line, Ethereum also drops from a three day high by press time. Monthly top, one-week-old ascending trend line favor bulls.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP