Chainlink Price Climbs Toward $7.40 as Whale Accumulation Supports Recovery

Chainlink has been making its comeback since Monday, with several big wallets buying in over the last four days. The buying activity coincided with positive technical indicators, which have helped the token increase its price towards the top of the recent trading range.

The recent buys do not necessarily mean another buy, but they have come as exactly as the momentum ticks higher and buyers have held up above $7.20. The pairing has changed the focus to whether or not LINK can break above resistance levels in upcoming sessions.

Whale Accumulation Supports LINK Recovery

Four addresses that are classified as whales have gained a total of 512,595 LINK over the last four days, according to on-chain tracker Nazoku. The total cost of the purchases, at current prices, is about $3.78 million.

The tracked wallets that were acquired end up in private addresses, with 251,735 LINK, 120,675 LINK, 113,068 LINK, and 27,116 LINK in total. The renewed purchase comes after another report that one of the same wallets has been steadily acquiring more, indicating that the buying spree hasn’t been a one-off.

Meanwhile, BraveNewCoin data showed LINK trading around $7.39, up roughly 3.4% over the past 24 hours. The token’s price dropped to a low of just over $7.13 and rose to a high of just under $7.43 during the session before settling around the higher price.

The consistent recovery has pulled LINK out of recent weakness and kept any immediate support at the $7.20-$7.25 mark. If you’re able to hold above that area, you’ll be able to keep your eyes set on the recent high at $7.43 and the resistance level near $7.50. If the price falls below $7.20, it may bring back the focus on the $7.10 support level.

Technical Indicators Point to Improving Momentum

The 30-minute chart of the stock is showing the buyers making a comeback after a few days of trading sideways.

The MACD indicator has turned positive with the MACD line rising above the signal line while the histogram is re-entering positive territory. The crossover is modest but marks a turnaround in the short-term momentum, coming on the heels of a few mixed trading sessions.

The Relative Strength Index also edged higher to 60.58, but it still stayed below overbought levels. That reading implies that the market has restarted buying without pushing into an overheated mode.

According to the technical chart, higher lows in the last few pullbacks have also created a price action pattern, suggesting that buyers have been present on most pullbacks during the recovery period. Trading volume has been fairly steady, suggesting a steady improvement rather than a dramatic surge in speculation.

Whale accumulation has been aligned with improving technical signals for Chainlink, which has continued with its trading momentum for now. Any action above $7.20 will make the recovery unbroken, while a break above $7.40 and $7.50, respectively, would give us a view of more extension higher.