u.today
According to the renowned crypto analyst Ali Martinez, the Chainlink ($LINK) price might be forming a “head and shoulders” pattern.
In a recent post, he shared a four-hour chart that appears to show the formation of the pattern.
In technical analysis, this pattern usually represents a trend reversal, often followed by a bull run.
If the “neckline” closes at $15, this could potentially trigger the price to move up to $19.
What is happening?
During the recent market correction, Chainlink’s price dropped 16% from the week’s high to $12.6.
As of press time, $LINK was trading at $13.65, with a 24-hour trading volume of $203,437,634, down 24%.
Whales buying dip?
According to Martinez, whales have been buying the dip after the recent crypto market crash. To be specific, they have bought over 6.2 million $LINK coins over the last week.
The latest acquisition of $LINK, estimated at around $76.88 million, is significant, especially given the recent broader market downturn.
Over the past 30 days, $LINK's price has plummeted by 17.17%. However, this slump has led to increased activity from whales, who have been buying $LINK tokens at these lower prices.
This surge in whale activity suggests that these large traders are expecting a price rebound for Chainlink soon.