Chainlink’s Remarkable Recovery
In a rather surprising turn of events, the price of Chainlink (LINK) has bounced back significantly, showing a stunning 240% increase from its yearly low of around $4.70 in June 2023. And it doesn’t end there – numerous on-chain and technical indicators suggest that we may see LINK’s price increase further in the days and weeks ahead.
Chainlink Poised for Ascending Triangle Breakout
Since November 2023, the price of LINK appears to be strategically positioning itself within an ascending triangle pattern. In the world of trading, ascending triangles often signal bullish continuation patterns when they form amidst an uptrend. The resolution typically arrives when the price shatters the upper trendline, subsequently rising by the maximum distance flanked by the upper and lower trendlines.
Currently, LINK looks set to stage a similar breakout scenario in December 2023. It is presently treading along the upper trendline of the triangle near $16. If the price is capable of a decisive rise above the said resistance level, then LINK’s breakout target might be set above $19.50, creating a potential 20% increase from the current price.
Chainlink on Exchanges Plunges
Additional evidence hinting at a potential 20% rally for Chainlink in December 2023 comes from sharp observations of the LINK supply across various cryptocurrency exchanges. As of the start of December, crypto exchanges held about 150.39 million LINK tokens, marking the lowest amount since February 2020. This shows a 19% decrease from the peak of 2023, where exchanges held 185.71 million LINK in August. Importantly, this decrease occurred in tandem with a massive 150% rise in LINK’s value.
A decrease in LINK’s supply across exchanges is widely interpreted as a result of traders’ preference to hold onto their LINK tokens rather than sell them for other assets. Therefore, Chainlink’s bullish run in 2023 could continue if the demand remains steady.
Increasing Demand Among LINK Whales
Chainlink has continued to attract considerable attention from its biggest investors, known as ‘whales’ in the crypto market. According to data, Chainlink’s top 200 addresses have collectively bought approximately $50 million worth of LINK tokens since the beginning of November. This increase in demand has coincided with a 50% increase in LINK’s market value, suggesting that these whales have been accumulating the token at its higher highs. This suggests a belief among large investors that LINK’s value will further increase as we move towards the New Year.
Words of Caution
Keep in mind that investing in cryptocurrencies comes with its fair share of risks. This post does not offer investment advice or recommendations. It’s crucial to do your own research before deciding to invest. Despite the promising signs, every trading move and investment decision inherently involves risks. Hence, proceed wisely and make well-informed decisions.
