Chainlink price held up well against Bitcoin’s drop on October 10 following higher-than-expected CPI inflation data. The crypto market slid by 1.2%, but the LINK price remained steady against USDT and gained 0.2% against BTC. Chainlink whale activity surged, signaling large holders could be accumulating the token. Is it time to buy LINK before the price takes off?
Meanwhile, Ronin, the EVM blockchain tailored for gaming, has decided to integrate the Chainlink cross-chain interoperability protocol (CCIP) to reinforce the security of its bridge and free up resources to accelerate its adoption. This is yet another customer paying for the services in LINK tokens purchased off the open market, increasing demand, which is a primer for LINK price surge.
Will Whale Accumulation Spark Chainlink Price Rally?
Data from Santiment shows whales are scooping up LINK tokens after the recent correction. When whales accumulate a token, it often signals confidence in the asset’s future value, leading to increased demand and upward price pressure as the market interprets whale activity as a bullish indicator. The large holder count increased from 489 to 502 between Oct. 1 and 8, showing whales are coming back.
Further, data from IntoTheBlock shows that the whale netflow inflow has increased since October 8. This means whales are accumulating more of that asset. The 7-day MVRV ratio drooped from 8.12% to -4.41% in the last two weeks, signaling that more holders are now at a loss, which can influence investor behavior.
This data is further supported by increased LINK Spot outflows. According to Coinglass data, investors have been consistently withdrawing LINK tokens from exchanges since September 15. Do they sense a bull market about to start for Chainlink price?
This observation is further supported by LINK price action, which suggests LINK could be about to surge by 19%. LINK price has been down 0.3% in the last 24 hours, with the rest of the crypto market trading at $10.61.
LINK Price Analysis: Bullish Setup Hints 26% Breakout To $16, But Not Before This
Chainlink price prediction shows the asset is in a bullish setup, supported by an ascending triangle characterized by accumulation and growing bullish momentum.
The key resistance zone between $12.50 – $13.00 represents a significant hurdle. This area has been tested multiple times, and a break above this could lead to a substantial rally.
There are two potential price targets upon a successful breakout above $13. The first target is a 19.84% rise, projecting a move to $13.80, and the second target shows an additional 26.64% gain, reaching as high as $16.00.
Conversely, $10.00 is a solid support level that aligns with the ascending trendline. If the price falls below this, it would invalidate the current bullish pattern. With the Chainlink price currently at $10.64, it is near this support, offering a potential low-risk entry point if the trendline holds.
Whale accumulation further strengthens the bullish outlook. A breakout above $13.00 would confirm a larger bullish trend, potentially driving gains beyond $16.00. If LINK consolidates above $13.00, it could signal the start of a new bullish cycle, with the potential to test higher resistance levels into 2025.
Frequently Asked Questions (FAQs)
Recent data shows a surge in whale activity, with large holders accumulating LINK tokens. This accumulation often signals confidence in the asset’s future value, which can lead to increased demand and upward price pressure, making it a bullish indicator for investors.
Ronin, an EVM blockchain designed for gaming, has decided to integrate Chainlink’s cross-chain interoperability protocol (CCIP).
Given the current price of around $10.64, which is near a support level, this could present a low-risk entry point if the ascending trendline holds.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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