Chainlink may be gearing up for another massive surge, as it did during the first week of January. It gained over 7% and retested its fourteen-day high.
Many analysts attributed the surge to the market’s general sentiment, which is accurate, as several assets experienced a similar increase. However, a closer look at the 1-week chart reveals significant increases in the week starting Dec 22.
The asset retraced after but resumed its run the following week. Prior to that price action, Santiment noted that the top 100 largest whales had accumulated over $263 million in LINK between November and December. The buying pressure explains the notable increase it had in the week of Dec 22.
Away from the events of two weeks ago, Chainlink had a massive decline earlier on Monday. It retraced from $13.3 to $12.5, shedding over 6%. However, it rebounded, trimming more than half of its losses.
Following the decline below $13, the top 100 whales resumed accumulation. Considering the events between Dec 22 and Jan 6, the altcoin may be gearing up for another massive push.
Conflicting Readings
Aligning with speculation of an impending uptrend, the altcoin rebounded close to the bollinger bands on the 1-day chart. With several uptrends starting off at this level, the likelihood of another kicking off in the next two days is high.
On the 4-hour chart, LINK is holding on to the $12.7 mark. It is also trading close to bollinger’s lower band and may be gearing up for a massive breakout in the hours ahead. Aside from the BB, MACD is positive. The histogram associated with it printed smaller bars in the past three sessions.
While the moving average convergence divergence is positive on the smaller timeframe, the opposite is true on the 1-day timeframe. The indicator displayed a bearish crossover a few hours ago, signalling further downtrends ahead.
In a nutshell, although onchain data are green, there is still a high likelihood of further decline. In either case, the downtrend is almost inevitable. Nonetheless, based on the 4-hour chart, the asset may experience a short-term relief in the coming days.
Away from the indicators, Chainlink may retest the December low when the downtrend resumes. There’s a slim chance it might hold, as the $11.9 support level has held out against several retests since November.
Something is Also Brewing on Nexo, like Chainlink
Market analyst JA_Maartun recently stated that after the latest rounds of selloff affecting NEXO, the volume bubble is cooling. The cooldown is attributed to reduced trading activity and price action.
When the cooldown happens, it usually aligns with the early stage of an accumulation. So, like Chainlink, Nexo traders have also resumed buying. Explaining why this phase matters, the analyst said: “This phase often precedes renewed bullish momentum, as weaker hands exit and informed buyers quietly re-enter.”
In a nutshell, Nexo may also be gearing up for further price increases. Aligning with this prediction are the bollinger bands on the 4-hour chart. The asset recently rebounded off it and may surge even higher in the coming days.
However, the dark shadow of a downtrend remains strong on the altcoin, as the MACD displayed a bearish crossover a few hours ago, signalling further downside ahead.
