Chainlink’s Battle with $8.3 Resistance on the Path to Uptrend

In a surprising turn of events, three significant wallets have deposited a total of $422,129 worth of Chainlink (LINK) tokens, equivalent to $3.08 million, into the Binance exchange today. As market analyst Lookonchain has invoked the community’s attention to the massive influx, it sparked renewed interest in the cryptocurrency, as traders and enthusiasts eagerly await Chainlink’s next move.

Chainlink, which recently broke free from its macro downtrend, appeared poised for an uptrend a few weeks ago. However, the road to a sustained upward trajectory is proving to be a challenging one for this decentralized oracle network.

Currently, LINK is facing resistance at the macro range high, signaling potential hurdles on its path to a full-fledged uptrend. The critical $8.3 threshold has consistently acted as a formidable resistance level, repeatedly thwarting LINK’s attempts to surge beyond it. Last week, Chainlink made another ambitious push to breach this barrier but was unsuccessful, leaving it in a consolidation phase around $7.3.

Chainlink is grappling with on-chain challenges as well. Over the past week, the number of new addresses and active addresses on the network has decreased by 27% and 3%, respectively, indicating a decline in market participant activity.

Moreover, the buy bias among participants has been waning, with large holders registering a net flow metric in the negative territory at -142.84k LINK. This suggests that whale sell orders have been outweighing buy orders in recent times.

While the macro downtrend has seemingly come to an end, Chainlink has yet to secure a successful retest that would confirm the breakout. As noted by pseudonymous analyst Rekt Capital through a tweet, breaking the accumulation range high is a critical milestone required for a new macro uptrend to take hold.

Until buyers regain their foothold in the market and Chainlink manages to breach the accumulation high, it may continue to grapple with challenges on its journey towards renewed upward momentum. The recent influx of LINK into Binance certainly adds an intriguing layer of complexity to the unfolding narrative of Chainlink’s price action, making it a cryptocurrency worth keeping a close eye on in the coming days.