- Lookonchain revealed that a whale purchased 423,443 LINK at a purchase price of $7.67.
- The last time this specific whale purchased LINK, the altcoin’s price jumped 6%.
- A symmetrical triangle chart pattern had formed on LINK’s daily chart, which suggested a breakout may soon take place.
The on-chain tracking platform Lookonchain revealed in an X (formerly Twitter) post earlier today that a whale purchased 424,443 Chainlink (LINK) over the past few hours. According to the post, the whale spent $3.25 million to purchase LINK at $7.67.
This is the second time this specific whale purchased a substantial amount of LINK during the past few months. In an X post on 20 July 2023, Lookonchain also revealed that the same whale bought 788,877 LINK estimated to be worth $6 million.
Shortly after this purchase, the price of LINK rose 6.5%. As a result, Lookonchain questioned whether this whale’s latest purchase could have a similar effect on the altcoin’s price in the short term.
From a technical perspective, a symmetrical triangle chart pattern had formed on LINK’s daily chart over the past week. This suggests that the altcoin’s price may breakout in the next few days.
If this breakout is towards the upside, LINK’s price could look to challenge the next resistance level at $7.940 within the upcoming week. Should bulls continue to push the altcoin’s price at this point, then LINK may flip this level into support – giving the cryptocurrency the foundation needed to rise to the subsequent barrier at $8.60 in the following few days.
On the other hand, a breakout towards the downside could lead to LINK falling below the immediate support level at $7.365, which was also confluent with the 20-day EMA line at press time. Consequently, falling below this significant price point may expose LINK’s price to the risk of dropping to as low as $6.485.
Investors and traders will want to take note of the fact that the daily MACD line had recently crossed below the daily MACD Signal line. This is after LINK dropped below the aforementioned $7.940 mark on 2 October 2023.
Therefore, this cross between the MACD and MACD Signal line could suggest a continuation of the cryptocurrency’s negative short-term trend. If this bearish thesis is validated, LINK’s price may drop towards the $6.485 support level.
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