LINK At $12: Whale Accumulation or Signal of a Price Drop?

Currently, LINK is trading at $9.03, up 7.28% in 24 hours. However, beneath this figure are concerning signals from technical indicators. Market analysts observe that LINK’s price is facing strong selling pressure, especially around the $12 zone where whales have been accumulating in recent days.

Whale Data: Accumulation Near $12 Amid Market Panic

On-chain data shows that large investors are appearing around the $12 level, but their intentions may not be a long-term bullish signal. Major wallet addresses are taking advantage of market panic to acquire cheap assets from panicked sellers.

This influx of capital around $12 is not necessarily a positive sign and should be viewed with caution. Analysts suggest this could be a short-term profit opportunity, but it does not necessarily indicate a long-term trend reversal.

H4 Chart - LINK Breaks Key Support Levels

On the H4 timeframe, the situation looks quite bearish. LINK has broken through key Fibonacci support levels: the 50% at $13 and the 61.8% at $12.50. Breaking these levels indicates that selling pressure from the bullish sentiment is too weak.

The RSI is currently at 36, lingering in oversold territory but without a strong rebound signal. This is the most concerning part—when RSI shows no reaction even in oversold conditions, it suggests that buying momentum is truly weak.

D1 Head and Shoulders Pattern: Warning of a Free Fall to $4.91

On the D1 chart, LINK is forming a clear Head and Shoulders (H&S) bearish pattern. This pattern is very worrying as it often signals a trend reversal from uptrend to downtrend.

The critical neckline is at $10.06. If LINK breaks below this level, the target prices could extend down to $4.91, representing a nearly 50% drop from current levels. Unless LINK can decisively rebound above $14, the bullish momentum remains in a vulnerable position.

Opportunity or Risk?

The question for investors now is: should they buy the dip around $12 with the whales, or wait for clearer signals of a breakout from the downtrend?

According to technical analysis, caution is advised. While large investors are accumulating, this is only part of the market game. Technical signals, from RSI to price patterns, do not support an immediate breakout.

This article is for informational and technical analysis purposes only and does not constitute investment advice. Please conduct thorough research and consult with professionals before making any investment decisions.