Chainlink price could reclaim its failed 5% rally as whales add 5 million LINK in a week

• Chainlink price shot up by more than 5% during the day before falling back down to trade at $7.57.
• LINK whale addresses have been accumulating aggressively, adding $38 million worth of tokens in the last seven days.
• Although retail traders hold 49% of the entire circulating supply, their profit-taking has no impact on price.

Chainlink price has a rather likely optimistic outcome even though the broader market cues may not be supporting it. This is because the investors, particularly the cohort of LINK holders that hold the most dominance over the circulating supply, are in support of the altcoin.

Chainlink price shows positive momentum

Chainlink price, trading at $7.56, was up by nearly 2% in the last 24 hours only after falling from a 5.3% recovery. The $7.40 support level is keeping the altcoin from slipping towards $7.00, where the 50-day Exponential Moving Average (EMA) stands. This support is crucial in LINK’s recovery toward $8.01.

As the altcoin only stands 13% away from the year-to-date high of $8.58, it needs a couple of green candlesticks to achieve the rise. This is supported by the Relative Strength Index (RSI) as well, which bounced off the neutral line at 50.0, suggesting bullish momentum is still active.

This momentum could drive the price towards $8.01, bringing it closer to the next major barrier of $8.38.

LINK/USD 1-day chart

However, in the event that the support line is invalidated, the bullish thesis would also be debunked, and LINK could decline to test the support line at $6.91.

LINK whales are bullish

The chances of a decline are minimal because one of the most important cohorts of LINK holders is actively bullish at the moment. The whale addresses have been consistently accumulating, which has contributed to the overall optimism by preventing a significant decrease in price.

Santiment data shows that the addresses holding 100,000 LINK to 1 million LINK have noted the addition of 5.12 million LINK tokens worth over $38.5 million. This accumulation took place just over the last week, bringing their holding to 127.55 million LINK.

Chainlink whale accumulation

On the other hand, the ratio of on-chain transaction volume in profit to loss shows that retail investors have been attempting to make a profit time and again. They tend to move their coins as soon as Chainlink price rises but fail to make any significant profit since the rally is short-lived.

However, their actions bear no major impact on the price action since whales account for more than 51.5% of the entire circulating supply.

Chainlink supply distribution

Thus, Chainlink price has more chances of seeing a rally over a decline in the coming weeks.