Chainlink Holds Critical Support as Whales Accumulate Below $13

TLDR:

• Chainlink maintains position above 0.618 Fibonacci level at $9.88 with accumulation zone between $10-$7.
• Top 100 whale wallets resume buying below $13 while retail traders sell holdings amid fear and impatience.
• Technical breakout and retest confirmed on two-week chart with key resistance targets at $25-$31 range.
• Analyst projects potential 800% cycle move to $100 if price holds above 0.5-0.786 Fibonacci support zone.

Chainlink trades at $12.70 while maintaining a multi-year support zone on the two-week chart. Technical analysts point to a macro bullish reversal structure that has been developing since the 2021 peak. 

The digital asset holds above key Fibonacci levels as on-chain data reveals contrasting behaviors between retail traders and large holders during recent price weakness.

Technical Structure Shows Breakout and Retest Confirmation

The current price action demonstrates a confirmed breakout and retest pattern on higher timeframes. Crypto analyst Patel identifies a strong accumulation zone between $10 and $7 that has provided consistent support. 

The asset maintains its position above the 0.618 Fibonacci retracement level at $9.88, which serves as a critical threshold for the bullish thesis.

Higher lows continue to form on the chart, suggesting the macro trend may be shifting toward bullish momentum. 

Key resistance levels lie between $25 and $31, which could trigger the next expansion phase if breached. The technical setup remains valid as long as price stays above the 0.5 to 0.786 Fibonacci zone.

Acceptance above the 0.786 Fibonacci level would keep ultra-bullish scenarios in play. Patel projects potential targets at $31, $52, and $100, representing an 800% cycle move from current levels. 

The structure depends on maintaining support at established technical levels while building momentum for an upward move.

The two-week chart pattern suggests a consolidation period that began after the 2021 top. This extended base formation typically precedes significant directional moves in either direction. However, the current positioning above key support areas favors continuation to the upside.

Smart Money Accumulation Contrasts with Retail Behavior

On-chain analytics firm Santiment reports the top 100 Chainlink whales have resumed accumulation as prices dipped below $13. 

This behavior pattern emerged while retail participants sold their holdings amid market uncertainty and impatience. The divergence between whale activity and retail sentiment often precedes major price movements.

Smart money entities appear to be gathering tokens during periods of weakness and negative sentiment. 

These large holders prepare for potential upward momentum or actively position to drive the next rally. The accumulation phase typically occurs when retail conviction wanes and fear dominates market psychology.

Patel notes retail selling has accelerated on FUD and impatience with price performance. This dynamic creates opportunities for sophisticated market participants to build positions at favorable prices. The pattern has repeated throughout previous crypto market cycles across multiple assets.

Whale wallets show increased activity during the recent pullback below $13. These entities control significant portions of circulating supply and their actions often signal conviction in future price direction. 

The current accumulation suggests confidence in upside potential despite near-term volatility and retail capitulation.

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