The Chainlink whales and sharks are getting busy buying the LINK token in chunks as the price ends its consolidation phase just below $10. With these whales and sharks accumulating lumps of tokens, there is already a supply squeeze of 32.93M more coins in just a month. If the market conditions get better, the supply squeeze and the already elevated whale conviction could send the price skyrocketing.
Whales holding between 100K and 10 million spring into action
ChainLink’s key stakeholders who hold between 100K and 10M LINK tokens have gone into a buying frenzy. With their wild accumulation appetite, this cohort, which is Chainlink’s most active holders, has accumulated 32.93M more coins (a +7.7% increase) in just one month. This is creating a supply squeeze in the market already, and although they are not so large as to be exchange-controlled custodial accounts, they have the ability to move meaningful capital.
The heightened accumulation of LINK tokens by whales and sharks comes at a time when the price of LINK crossed a major resistance level, which is the 100-day moving average. Importantly, one must consider the 100-day moving average in order to determine trends on a medium time frame and ignore small fluctuations within the price action.
In particular, it allows one to define whether the market is bullish, bearish, or moving sideways. This line is especially important for traders since it reveals the medium-long term market situation, and many retail and institutional investors follow it. As a result, it often turns into a support or resistance line in a self-fulfilling manner, as many players will be looking for such a price.
LINK shatters 100-day MA
First of all, it can be used to identify trend direction. When the current price level lies above the 100-day MA, then it means that the market trend is bullish, whereas if it is situated below, then it means that it is bearish. Second, it serves as a dynamic support level when the price movement is bullish and as a resistance level when it is bearish. Third, the trader may use the 100-day MA to validate breaks through some barriers.
Bullish momentum rises as LINK forms Golden cross
Meanwhile, a golden cross has also taken place just as LINK crossed above the two MAs as shown in the above chart. A Golden Cross is a technical indicator that signifies the emergence of a bullish situation in the financial markets. In such a situation, the moving averages of a short period of time pass over the moving averages of a relatively long period of time. The occurrence of a golden cross signals a bullish market situation in the sense that there is rising momentum in the financial market.
For instance, a situation in which the moving average of 50 days passes over that of 100 days signals an emerging bullish condition since this indicates that recent trends are outperforming the general medium-term trends on the market. This means that buyers are taking control of the situation. A trader expects that an uptrend will emerge as a result of the occurrence of a golden cross.
Chainlink trades inside a bullish broadening wedge formation
On the weekly chart shown above LINK is currently trading inside a broadening wedge pattern. However, it missed out on making a higher high above $30. This is important to this pattern, as the broadening wedge is a technical chart pattern where price action expands over time, forming two diverging trendlines—one connecting higher highs and the other connecting lower lows.
Unlike a tightening pattern such as a triangle or a falling wedge, a broadening wedge shows increasing volatility and uncertainty, where both buyers and sellers are actively pushing price in opposite directions. This creates a widening structure that reflects emotional and often unstable market conditions.
No higher highs above $30 for LINK
With regards to Chainlink (LINK), the price pattern recently witnessed some features of this phenomenon. LINK was unable to create a new higher high due to bearish pressure in the market environment. LINK did not continue to rise and created a lower high, showing that sellers intervened earlier compared to the previous attempt to create a new high.
After that, prices dropped to the same extent as they had previously risen, and a lower low was formed. It becomes clear that this price movement represents a feature of a weak market, where buyers try to rally to a higher level but meet strong resistance from the sellers’ side. Thus, LINK cannot achieve a higher high, which would usually indicate that bulls can continue their rally further.
It doesn’t mean that LINK no longer has bullish potential. It only means that the market is in an equilibrium stage, where volatility rises, but the trend’s direction is unclear. Sellers dominate in the short-term perspective, although they do not have total control over the price movement yet.
The market is building latent energy that could fuel a rally
In this context, the market behaves like a coiled spring. Even though LINK has missed its immediate opportunity to establish a higher high, it has not lost that energy—it can store it in the structure.
When such compression phases occur within broader cycles, price often revisits missed levels later once selling pressure weakens or liquidity conditions improve. This means that what LINK has failed to achieve under current bearish pressure could potentially be reclaimed in a future expansion phase, provided market conditions shift in favor of buyers.
In short, LINK’s current structure reflects expanding volatility under bearish control but also the possibility that the market is building latent energy that could fuel a catch-up move once pressure releases.