A popular crypto analyst named Ali has discovered some significant activity on the Chainlink (LINK) ecosystem that could have a substantial impact on the cryptocurrency’s price action. Ali revealed on Twitter that nearly 406 million LINK tokens were purchased by 68,540 addresses, and these purchases were made between the price range of $6.3 and $7. This accumulation could have technical implications for the future price behavior of LINK. The large buy orders around the mentioned prices could act as a vital support area that could prevent LINK’s price from falling to lower levels.
According to TradingView data, LINK had retraced nearly 30% from its yearly high of $8.397 and reached a local low of $5.900. However, it managed to recover and reached a new high on February 20, 2023, following a rally that began at the start of the year and swept across all major cryptocurrencies in the market. During the rally, LINK increased by over 51%, surging from $5.569 to the yearly high. As of now, LINK trades at $7.271, which is a few points above the upper limit of the large purchase identified by Ali.
Chainlink, as described by CoinMarketCap, is a blockchain abstraction layer that enables blockchain interaction with external data feeds. It is ranked as the 19th cryptocurrency based on market capitalization, with a circulating supply of 517 million tokens and a trading volume of $293.9 million in the last 24 hours.
