LINK Technical Analysis Feb 1

LINK’s 24-hour volume reached 658.65 million dollars, showing high market participation in the recent decline; this indicates strong selling pressure but carries potential accumulation signals with RSI at 24 oversold level.

Volume Profile and Market Participation

LINK’s current volume profile stands out with 658.65 million dollars in trading volume over the last 24 hours. This level occurred about 150% above the 7-day average volume, signaling a dramatic increase in market participation. While the price declined by 6.14% in the downtrend, this high volume shows a broad participant base turning to selling. According to volume profile analysis, volume nodes (POC – Point of Control) have formed concentrated in the $10.61-$11.14 resistance region; this reflects institutional-level rejection points. For a healthy decline, volume is expected to be low on upward moves and high on downward moves – here, there’s no opposite scenario; instead, there’s a volume explosion on down moves. This brings retail-driven panic selling to mind, but multi-timeframe (MTF) volume levels (13 strong levels on 1D/3D/1W: 3 supports, 8 resistances) paint an unbalanced picture. Market participation, combined with Supertrend’s bearish signal ($11.97 resistance), dominates short-term weakness. Still, volume concentrating below EMA20 ($11.85) implies bottom hunters may enter. Although volume delta analysis (buy vs sell volume) shows a negative histogram, negative divergences are observed in recent hours – meaning sell volume may be starting to decrease.

Accumulation or Distribution?

Accumulation Signals

The accumulation phase is defined by low-volume price consolidations and hidden buying signals. LINK’s RSI at 24.29 oversold level is promising at the point where volume peaks on declines and stabilizes. Especially in the $8.97 support region (score 72/100), MTF volume supports (3 strong S on 1W timeframe) lay the groundwork for accumulation. In the last 3-day volume profile, we see low-volume wicks (long lower shadows); this may indicate big players buying at the bottom. Although MACD’s negative histogram is weakening, volume divergence (volume decreasing as price makes new lows) supports potential reversal. Historically, LINK has experienced 20%+ recoveries after similar oversold volume explosions – for example, before the 2025 Q4 rally.

Distribution Risks

Distribution reveals itself with hidden selling in high-volume upward moves. The current $658M volume reflects climax selling in a 6% decline; this shows weak hands being cleaned out but selling pressure potentially continuing at strong resistances ($10.61, score 61). The 1S/4R imbalance on 1D/3D timeframes brings institutional distribution to mind. If volume fails to break $11.14, it could lead to a bearish target of $4.79 (score 22). Warning: If high-volume down candles come one after another, distribution is confirmed.

Price-Volume Alignment

Price action shows strong alignment with volume: Declines are high-volume ($658M), potential reactions low-volume. This provides bearish confirmation – a healthy decline pattern. However, as price trades below EMA20 ($11.85), there’s hidden divergence in volume: As price makes new lows (near $9.93), volume is 20% lower than previous down days. This shows downside momentum weakening and volume confirmation fading. Volume-price analysis rule: Divergences are reversal precursors. In the short term, if $8.97 support holds with volume, bullish divergence may form; otherwise, misalignment continues.

Large Player Activity

Institutional activity hides in volume spikes. LINK’s 658M volume has triggered whale wallet movements (per on-chain data): Over the last 24 hours, 10M+ LINK transfers to exchanges. Large block trades ($10M+), rejected at $10.61 resistance – typical smart money distribution. However, accumulation clusters exist at 1W MTF volume supports (around $8.97); institutional footprint (high volume low volatility) is forming at the bottom. Whale ratio (large vs small trades) has risen to 65%, confirming pros are active. Although exact positions are unknown, patterns are turning toward accumulation – note: Rising BTC dominance restrains altcoin whales.

Bitcoin Correlation

BTC at $78,350 with a 6.12% decline is dragging LINK (correlation 0.92). BTC Supertrend bearish; if supports $77,897-$75,720 break, LINK falls to $8.97. If BTC resistance at $80,285 is broken, LINK $11.14 breakout is triggered. BTC dominance caution: BTC stabilization is required for altcoin rally – in the current downtrend, LINK volume remains high in parallel with BTC.

Volume-Based Outlook

Volume-based outlook is short-term bearish but reversal-potential: $658M sell volume may be climax, with RSI oversold + divergence expecting a test of $10.61. Bullish target $14.01 (score 26) requires volume confirmation. Strategy: Buy on volume increase at $8.97, sell on volume decrease at $11.14. Volume integration recommended for LINK Spot Analysis and LINK Futures Analysis. Overall, volume is lying to price: Selling is exhausting.