Link reserves grow and whales continue to buy, Chainlink price points to $10

Key insights

Chainlink (LINK) prices are testing key resistance levels after months of holding on to strong support.

Chainlink's reserves added more than 706,000 LINKS, and its total open positions exceeded 5.21 million.

A whale address bought another 163,494 LINKS, bringing the total position to 2.413 million LINKS.

Chainlink prices have regained focus due to a new round of whale buying, increased reserve positions and chart patterns that traders believe could trigger greater volatility. A large investor increased his holdings of LINK, while Chainlink reserves also increased its holdings in July. These events put LINK prices back on the watch list, as traders wait to see if they can move towards the $10 mark.

At the same time, the forecasts and target prices presented in this article are based on technical analysis and may be adjusted as market conditions change and should not be regarded as guarantees of future performance.

This article does not provide financial advice, and readers should research or seek professional advice on their own before investing in cryptocurrencies.

Chainlink price test key resistance level

Chainlink prices are currently at a critical juncture after months of selling pressure. Market analyst CryptoTheBossX pointed out that LINK prices have now hit a point where the long-term downtrend line meets strong support areas. This level has been watched by many traders for a long time.

The chart shows that LINK prices remain above this support despite multiple attempts to lower. Whenever prices fall into that area, buyers step in to prevent them from falling further.

This solid support has led some traders to believe that selling pressure is weakening. At the same time, the trading range has gradually narrowed, indicating that the market is waiting for the next step.

The downtrend line has now become the focus of attention. If prices break this trend line, it will be the first clear signal of a shift in the market after months of decline. Until then, the support area remains a key area for maintaining the current market structure.

Many traders are currently keeping a close eye on the US$10 mark. If buyers can break through the trend line and hold on to that position, LINK prices may gain room for further upside. If it fails to break through, the token may continue to fluctuate in the current range. Currently, traders are focusing on both support levels and trend lines, waiting for the next signal.

LINK reserves have added more than 706,000 tokens

Another development comes from Chainlink reserves. Chainlink indicator dashboard data shows that more than 706,000 LINKS were added to the reserve in July, with the latest purchase value exceeding US$5.7 million.

After this increase, the total reserve position reached 5,210,976 LINK. This update has attracted attention because it means that more LINKS are included in the reserve. Some market observers believe that if buying continues, it may reduce the number of LINK available in the market in the long run.

There is currently no announcement directly linking reserve purchases to future price movements. Even so, reserve growth remains one of the key indicators that many investors focus on when tracking Chainlink prices. The timing is also eye-catching, as the reserve update coincides with important chart levels in the LINK price test.

Whale buying continues to attract market attention to Chainlink

Despite the correction in Chainlink prices, large investors continue to buy LINK. According to Nazoku, a market commentator for Platform X, Whale Address 0xFeB purchased another 163,494 LINKS from Coinbase, worth approximately US$1.37 million.

After this transaction, the address now holds 2.413 million LINK, worth approximately US$20.15 million at current prices. Data shared by Arkham also showed that the address held about the same number of LINKS.

Nazoku said that the whale is still increasing its stake in LINK. The account also pointed out that such a large number of positions made the address's influence on the market far beyond that of small investors.

Whale buying does not always drive prices up, but traders often pay attention when significant buying occurs near key chart levels.

As Chainlink prices tested resistance, growth in reserve holdings and a new round of whale buying became the main narrative surrounding the token. The next step will depend on whether buyers can push LINK prices above the long-term downtrend line and hold them there.