Chainlink (LINK), the high-performance decentralized oracle network, has seen a staggering 240% price surge from its yearly low of roughly $4.70 in June 2023. There’s growing evidence to suggest that this Chainlink price rally might continue its upward trajectory in the foreseeable future. This optimism is backed by a variety of on-chain and technical indicators, which we will explore in the following sections.
Technical Pattern Suggests a Potential Breakout
The price of LINK has been forming what looks like an ascending triangle pattern since November 2023. This pattern is often seen as a bullish sign, typically indicating continuation of an uptrend. The pattern is confirmed when the price breaches the upper trendline, potentially leading to a rise equivalent to the maximum height of the triangle. Currently, LINK is trading near the upper trendline of the triangle at around $16. If it manages to break this resistance decisively, the next target could be over $19.50, which is a 20% rise from the current price.
Decreasing Supply on Exchanges
Another factor pointing towards a potential Chainlink price rally is the decreasing number of LINK tokens held on crypto exchanges. As of December 3, approximately 150.39 million LINK tokens were held on exchanges, the lowest since February 2020. This represents a 19% drop from the 2023 peak of 185.71 million LINK in August, a period during which the token’s value rose by 150%. The dwindling supply on exchanges suggests that traders are more interested in holding LINK than selling it, which could further fuel its price rally if demand remains high.
Accumulation by LINK Whales
There’s also evidence of strong demand among the top LINK holders, often referred to as ‘whales’. Data from Santiment shows that the top 200 Chainlink addresses have accumulated an additional $50 million worth of LINK tokens since the start of November. This accumulation occurred concurrently with a 50% increase in LINK’s market value, indicating that these whales are confident in further price appreciation.
As we approach the year’s end, the Chainlink price rally shows promising signs of continuing. Investors and traders can track these developments and more using applications like cryptoview.io, which provides comprehensive insights into the cryptocurrency market.
Please note, investing in cryptocurrencies carries risk and should always be done based on thorough research.
