The native cryptocurrency of Chainlink (LINK) is under pressure, falling 2% during Tuesday’s market session. While Bitcoin continues to set new highs, LINK is facing challenges, with strong selling activity at the $30 mark limiting its growth.
Whale Activity Sparks Optimism
Despite the price pullback, on-chain data shows encouraging signals. A prominent crypto whale withdrew another 100,000 LINK, worth $2.95 million, from Binance earlier today. According to Lookonchain, this whale has accumulated 529,999 LINK tokens, valued at $15.5 million, over the past three days.
Typically, such large-scale withdrawals indicate bullish sentiment. When whales move tokens off exchanges, they are often preparing for long-term holding or staking, reducing sell-side pressure in the market.
Fibonacci Levels Show Key Support Zones
Chainlink has faced aggressive selling above $30 since last weekend. This is evident in the rejection candles seen on the price chart. While Bitcoin’s rally above $100k has propelled most altcoins upward, LINK buyers are struggling to sustain a breakout beyond $30.
If the selling continues, LINK could drop 6% to test the $25.6 support level. This level aligns with the 23.6% Fibonacci retracement and the 20-day EMA, providing a potential bounce point for buyers.
Should support hold at $25.6, buyers may attempt to retake the $31 resistance, with a potential rally toward $36. This would represent a 30% growth opportunity. Additional key support lies at $25.7 and $22.2, corresponding to the 38.2% and 50% Fibonacci levels.
Outlook for Chainlink Buyers
While LINK’s recent price action shows signs of resistance, the ongoing accumulation by whales could signal a positive turn. If the coin finds support at key Fibonacci levels, it may regain upward momentum. For now, traders should monitor the $25.6 support zone and volume trends for signs of a potential breakout.