Large wallet holders have been accumulating Chainlink (LINK) since the beginning of November. Despite this mass accumulation for more than a month, LINK continues to crash. However, as LINK has been coiling tightly, there will be a big move coming in the future.
The 100 largest wallets holding Chainlink started to once again accumulate LINK tokens. The whales went into a buying frenzy on the 1st of November, buying and adding 20.46M $LINK (~$263M) back to their wallets.
Whales lost interest in LINK as it crashed in October. They started to take profit from their holdings, as keeping them further would shrink their profit. But their strategy changed once LINK crashed below the $16 support level. Subsequently, the whales sprang into action, gulping up the supply.
As LINK’s fall got steeper, the wallets started to aggressively buy more tokens. Amidst all this buying frenzy, the LINK prices have remained within the falling wedge, rebounding off the upper and lower trendlines.
After crashing below the $16 support level, LINK is now resting on the $12 support level. LINK lost the $16 support level when the death cross happened. The 50-day Moving Average (MA) crossed below the 200-day MA, causing a death cross, which crashed the prices below this major support level.
During the past week, the token tested the 50-day MA which is at $14, but it was not able to push past this level even with the whales buying.
Fundamentally, although LINK is on a downtrend, it actually is not. Just like a coiled spring gaining energy before springing out, LINK will also break out to the top once the pattern is complete.
Given that LINK manages to hold above the support level at $14, it would be targeting $19 as its next resistance level. Just like a coiled spring uncoils into its full length, when LINK breaks out of the wedge, it will reach as high as the widest part of the wedge, as shown in the chart.
