Chainlink's (LINK) digital asset experienced significant growth against the broader market decline, becoming the 12th largest cryptocurrency by market capitalization.
Major Purchase Supports LINK Price Surge
On Friday morning, LINK achieved a 9% surge, rising from $12.98 to $14.41. This spike followed a major transaction worth $7.1 million executed by a whale. The deal involved purchasing 506,226 LINK at an average price of $14.03. To fund the purchase, 1,108.83 ETH was sold along with a $5 million withdrawal in USDC from the decentralized lending platform Spark.
Impact of Macroeconomic Factors on the Market
Despite LINK's rise, the overall crypto market remains under pressure from mixed macroeconomic signals. Investor expectations regarding the Federal Reserve’s upcoming meeting are compounded by news of consumer inflation expectations. These factors may influence market volatility in the coming days.
Technical Analysis: Prospects and Risks
Having rebounded from recent lows, LINK faces a significant resistance level at $14.50. Successfully overcoming this level could propel prices to $15.00-$16.00, although key support remains at $13.00-$12.50. Technical indicators point to further downside potential despite short-term recovery. Investors should be cautious, given the unrealized losses in large positions.
Increased uncertainty is evident in the crypto market: major transactions may signal growth potential, yet current economic factors and unrealized losses present risks. LINK's ability to maintain current levels will depend on central bank decisions and the macroeconomic environment.
