Chainlink’s (LINK) recovery has been excellent and the altcoin is looking to recoup all of its losses from late July.
There is, however, one obstacle in this path which, oddly enough, may be the result of intense optimism.
Chainlink suffers from success
Chainlink price has benefited from a gradual recovery and is now enjoying the optimism of large wallet holders. Whales recently saw their first significant inflows since early August.
Wallets holding at least 0.1% of the total circulating supply of LINK added more than 3.4 million LINK in just two days. This $40 million increase in flows increased the total inflow from 256,000 LINK to 3.71 million LINK. This indicates that the recent price increase has caused renewed confidence among investors.
Read more: How to Buy Chainlink (LINK) and Everything You Need to Know
The significant increase in inflows suggests that the recent rally in Chainlink (LINK) has caught the attention of major market players. These investors are now taking positions based on the coin’s upward momentum. This growing confidence could signal stronger bullish sentiment among major trading entities.
However, the Relative Strength Index (RSI) shows that LINK is approaching the threshold of the overbought zone. Any further price increase caused by the consistent accumulation of whales and other investors is risky.
This is because as LINK approaches this level, there is a chance that the current rally could face a reversal. This is because the overbought zone is synonymous with price corrections and could curb LINK’s 40% rally in two weeks.
LINK Price Forecast: Another Barrier
Chainlink Price could recover a significant portion of the gains lost in the July crash by flipping over one resistance. Marked at $12.00, this level has been tested as support in the past.
However, with the RSI showing the altcoin is at risk of being overbought, the attempt to break through $12.00 may fail. LINK may reverse the price gains and fall below it again, facing consolidation above $9.35.
Read More: Chainlink (LINK) Price Prediction 2024/2025/2030
On the other hand, if the bullish momentum dominates profit taking, the altcoin could continue its uptrend. A breakout and test of $12.00 as support would allow Chainlink price to break through $13.00, refuting the bearish thesis and increasing investors’ profits.
