Chainlink (LINK) has been generating substantial interest among heavy-hitters on the market. Notably, one whale has recently made significant LINK purchases, sparking renewed interest and speculation about LINK's potential price performance in the foreseeable future.
In a recent transaction, a whale spent 1,757 stETH, equivalent to $3.3 million, to buy a whopping 411,142 LINK at an average price of $8.06. This move, which occurred a couple of hours ago, was not an isolated event.
The same whale had already shown keen interest in Chainlink, having spent 500,000 USDC to buy 65,723 LINK at $7.61 on July 20. These substantial purchases represent a bullish signal for LINK, contributing to its recent upward price trajectory.
The price of LINK has been on a rise lately, surpassing the $8 price level, gaining an impressive 8% in a single day. These notable spikes have been attributed, in part, to the whales who have been accumulating the token. The optimistic sentiment reflected by these whales is usually a strong indicator of an asset's potential.
However, despite the current bullish sentiment, traders should be mindful of the potential for a price reversal. LINK's RSI, the Relative Strength Index, is currently forming a double-top pattern. This pattern is often seen as a bearish signal, suggesting that the asset may be overbought and due for a correction.
While the big players' accumulation often induces positive market sentiment, the double-top pattern in RSI is a reminder to investors that LINK's price may soon experience a pullback. As always, while whale movements can hint at potential future price actions, investors should undertake their due diligence and consider market volatility.