Chainlink's price skyrockets thanks to whale purchases—However, an important metric could derail the uptrend.

The price of Chainlink (LINK) has once again led the market. While most altcoins are struggling to maintain profits, the price of LINK has risen over 5% in the past 24 hours and over 140% over the past year.

The application of the Oracle network in the decentralized finance field (DeFi) helps Chainlink maintain its relevance, but the recent price increase is not merely natural; it is supported by strong buying from large wallets. However, a subtle indicator may be suggesting a pause.

Whale activities explain the price surge of chainlink

In the past seven days, whale wallets have added over 1.1 million LINK to their investment portfolios. At the current price of 24.80 USD, this equates to approximately 27.2 million USD in capital inflow. This type of capital is rarely random; it often reflects strong conviction. This is clearly demonstrated through Chainlink's price action.

Chainlink whale activity | Source: NansenSmart wallets, which often track market entry points well, have also increased their holdings to 12.6% over the past week.

Meanwhile, the top 100 LINK addresses have continued the accumulation process, albeit at a slight level. The fact that all three segments are moving in sync is a clear reason for LINK's price to have detached from the overall weakness of the market.

Missing link? Reserves on the exchange tell a different story

Despite strong support from whales, one indicator suggests that the price of Chainlink may cool off in the short term: exchange reserves.

On August 16, the LINK balance on the exchange dropped to its lowest level of the month at 162.59 million LINK, just as the price rally began to accelerate. This is a positive sign, indicating that fewer LINK tokens are being held on exchanges, thus the selling pressure is likely to be low.

However, this has changed at the present time.

The price of Chainlink and exchange reserves | Source: CryptoquantAs of today, reserves have increased to 162.90 million LINK, equivalent to an additional increase of over 300,000 LINK, about 7.4 million USD at current prices. This indicates that some traders are bringing LINK back to exchanges, possibly to prepare to take profits.

Moreover, in the past 24 hours, the whale wallet balance has slightly decreased, indicating that some whales have stopped buying. The top 100 LINK addresses have also shown slight distribution; not large, but enough to support the hypothesis that profit-taking may be imminent.

It should be noted that smart wallets continue to accumulate, which suggests a price confidence in the medium term.

LINK holders and whales may take profits | Source: NansenTherefore, while the overall accumulation explains the recent gains, the change in reserves and wallet behavior is the missing factor that could disrupt the price surge and lead to a quick consolidation.

Chainlink price stuck between two important levels

Currently, the price of Chainlink is trading around 24.80 USD, stuck between important levels. The nearest resistance is at 25.70 USD, and a breakout above this level could drive LINK towards 28.20 USD and even 30.10 USD, according to Fibonacci predictions.

However, there are also important areas below.

Chainlink price analysis | Source: TradingViewIf short-term selling pressure increases, the first two support levels will be $24.70 and $23.40, followed by $21.40. These price levels could hold if exchange reserves remain stable or begin to decline.

So far, the bullish scenario is maintained as long as the accumulation of smart wallets continues and whales return to buy. However, if the reserves continue to increase, the price of LINK may cool down before attempting to reach new highs again. A drop below 21.40 USD could weaken the current uptrend and turn the price structure of Chainlink into a downtrend in the short term.

Mr. Giáo