As a seasoned analyst with over a decade of experience in the crypto market, I have witnessed numerous bull and bear cycles that have taught me to read between the lines of data and trends. Based on the recent whale accumulation of Chainlink (LINK) tokens, the integration of Chainlink Cross-Chain Interoperability Protocol (CCIP) by Ronin, and the consistent outflows of LINK from exchanges, I believe there is a strong possibility for a LINK price rally in the near future.
On October 10, despite Bitcoin‘s dip due to higher-than-anticipated CPI inflation data, Chainlink’s price stood firm. The overall crypto market fell by approximately 1.2%, yet Link’s price remained stable relative to USDT and even grew slightly (0.2%) against Bitcoin. This stability could indicate a surge in whale activity, suggesting large investors might be amassing the token. With this in mind, is it worth considering investing in LINK as its price potentially rises?
In other news, Ronin, a blockchain specifically designed for gaming, has chosen to incorporate Chainlink’s cross-chain interoperability protocol (CCIP) to strengthen the security of its bridge and allow for faster adoption by freeing up resources. This decision represents another customer purchasing LINK tokens from the open market to utilize these services, which could potentially boost LINK’s price due to increased demand.
Will Whale Accumulation Spark Chainlink Price Rally?
According to Santiment’s data analysis, large investors (whales) have been buying LINK tokens following the recent market adjustment. When whales invest in a particular token, it typically indicates their faith in the asset’s future worth, which can lead to increased demand and price escalation due to positive market interpretation of such activity as a bullish sign. The number of significant investors (whales) has risen from 489 to 502 between October 1st and 8th, suggesting these large investors are returning to the market.
Additionally, information provided by IntoTheBlock indicates an upward trend in whale inflow since October 8. This suggests that these large investors are amassing more of this particular asset. Over the last fortnight, the 7-day MVRV ratio has declined from 8.12% to -4.41%. This downward shift implies a growing number of holders are experiencing losses, which could potentially impact investor decision-making.
The data suggests that there’s been an uptick in Chainlink token outflows from exchanges as per Coinglass data, with this trend starting from September 15. This could potentially indicate that investors anticipate a surge in the Chainlink price, hinting at an upcoming bull market.
This analysis is reinforced by recent LINK price trends, indicating a potential increase of approximately 19%. Over the past day, the value of LINK has decreased by 0.3%, while the overall crypto market stands at $10.61.
LINK Price Analysis: Bullish Setup Hints 26% Breakout To $16, But Not Before This
The forecast for Chainlink suggests a positive trend, underpinned by an uptrend formation known as an “ascending triangle.” This pattern typically arises from increasing accumulation of the asset and escalating bullish energy.
In simpler terms, the price range from around $12.50 to $13.00 is a major obstacle that could be tough to overcome. This region has been tried numerous times before, and if prices manage to surpass it, it might trigger a strong upward trend.
If we manage to break through the current price of $13, there are two possible price levels we might reach. The first one would be a 19.84% increase, taking us up to approximately $13.80. The second target represents an additional 26.64% rise, potentially pushing the price as high as $16.00.
Instead, a supportive level of $10.00 aligns with the rising trendline. If the price drops below this, it would contradict the current bullish tendency. As Chainlink’s price stands at $10.64, it is close to this support, providing a possible low-risk entry point if the trendline remains intact.
As I delve deeper into my research on LINK, each significant accumulation adds fuel to the optimistic perspective. A decisive surge above the $13.00 mark would serve as a clear indication of a robust bullish momentum, possibly propelling us towards gains beyond $16.00. If LINK manages to consolidate above this threshold, it might herald the commencement of a fresh bullish phase, potentially challenging higher resistance barriers all the way into 2025.
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2024-10-11 08:46