Chainlink (LINK) has experienced a remarkable rebound, surging by over 240% from its yearly low of around $4.70 in June 2023. The cryptocurrency’s price has been consolidating within an ascending triangle pattern since November 2023, indicating a potential bullish continuation in the near future.
Ascending triangles are considered bullish patterns when formed during an uptrend. They typically resolve when the price breaks above the upper trendline, often resulting in a significant upward movement. In the case of Chainlink, if it surpasses the resistance level near $16 decisively, it could target a breakout level of over $19.50, representing a 20% increase from its current price levels.
Increase in LINK’s Value Points to Positive Market Sentiment
Several on-chain and technical indicators support the prediction of further price appreciation for Chainlink. One key factor is the decreasing supply of LINK tokens across crypto exchanges. As of December 3, the total holdings of LINK tokens by exchanges were at their lowest level since February 2020, with a 19% decline from the peak in August 2023.
This decrease in supply suggests that traders and investors are choosing to hold onto their LINK tokens instead of selling them for other assets. The strong demand for LINK indicates a positive market sentiment, further supporting the potential for a continued bull run in December 2023.
Accumulation by Top Whales Indicates Confidence in Rising Value
In addition to the decreasing supply, data tracking the richest addresses holding LINK tokens reveals a significant accumulation by Chainlink’s top 200 whale addresses. These addresses have acquired $50 million worth of LINK tokens since the beginning of November, aligning with a 50% increase in LINK’s market valuation.
The accumulation of LINK tokens by the top holders suggests that they believe in the cryptocurrency’s long-term value and anticipate further appreciation in its price. This accumulation at higher highs indicates a positive outlook for Chainlink and supports the expectation of a continued surge in its price by the start of the New Year.
Looking ahead to December 2023, Chainlink (LINK) shows strong potential for a continued price surge. The formation of an ascending triangle pattern, along with a decreasing supply of LINK tokens on exchanges, indicates a bullish continuation. Additionally, the accumulation of LINK tokens by top holders adds to the positive market sentiment surrounding Chainlink.
Investors and traders should monitor the price movements of LINK closely, particularly its ability to break above the resistance level near $16. If the cryptocurrency successfully surpasses this level, it could target a breakout level of over $19.50, presenting an opportunity for a 20% increase from its current price levels.
As with any investment, it is important to conduct thorough research and consider various factors before making any trading decisions. While the indications are positive for Chainlink, market conditions can change rapidly, and it is essential to stay informed and adapt strategies accordingly.