Chainlink Set for Explosive Breakout as Whale Activity Soars.
Chainlink began 2024 on a positive trajectory but has since failed to hold on to the bullish run after peaking at a yearly high of $18.12 in March. Following a pullback, LINK started rising on August 5 and even made a higher low in September.
Such a pattern may indicate a possible breakout from the long-term corrective channel, meaning the token seeks to resume an upward move.
LINK/USD price chart. CoinMarketCap
Currently, LINK trades at $12.44, reflecting an increase of 8.24% in the past day and 19.71% over the last week.
Chainlink highlights onchain finance’s transformative potential. Source: X
On Sept. 24, Chainlink announced a partnership with ARK Invest and 21 Shares to integrate its Proof-of-Reserve (PoR) technology into their products. The partnership aims to enhance the transparency and security of exchange-traded products (ETPs), aligning with the broader trend of increased demand for Bitcoin and Ethereum spot ETFs.
Chainlink Whale Activity Surges Following Major Token Unlock
Decentralized oracle network Chainlink (LINK) has seen a surge in whale activity over the last 48 hours. According to IntoTheBlock data, Chainlink is reporting a 293% increase in large transaction volume. This amounted to $82 million, or 7.28 million LINK, over the last 24 hours.
This spike in whale activity followed Chainlink’s recent token unlock. The platform unlocked and transferred 18.75 million LINK from five noncirculating supply wallets, with 18.125 million LINK, worth approximately $207 million, sent to Binance.
Since 2022, Chainlink has moved over $1.29 billion worth of LINK tokens to Binance quarterly.
Chainlink (LINK) Open interest (OI) chart. Source: CoinGlass
On the derivatives side, Chainlink’s trading volume has increased by 45.60%, bringing it to $398.52 million. Open interest in LINK derivatives rose by 14.42% to $186.42 million.
Link Eyes Breakout: Analyst Predicts Bullish Shift at $12.70
The weekly time frame shows that the LINK price started a five-wave increase in June, culminating with March’s yearly high of $22.87.
After a period of sideways trading, LINK is approaching resistance at $12.35, identified by the Fibonacci retracement from $18.12 to $10.08, indicating potential volatility.
LINK/USD 1-day price chart. Source: TradingView
Technical indicators reveal a mixed bag of signals. The Relative Strength Index (RSI), resting at 47.84, suggests LINK has breathing room before entering overbought or oversold territories, hinting at continued opportunity for price advancement.
Meanwhile, the Money Flow Index (MFI), at 0.12, underscores tepid buy pressure that could pivot should investor sentiment bolster.
Chainlink (LINK)price chart. Source: Crypto Rand
Meanwhile, Crypto Rand, a pseudonymous analyst, pointed out on X that Chainlink could trigger a bullish reversal across timeframes if it breaks above the $12.70 resistance. He pointed out that this level is key across multiple timeframes, and a confirmed close above it could trigger a bull reversal.
If LINK holds above $12.70, it could pave the way for a rise toward the next resistance near $18, a level reached earlier this year. However, if it fails to stay above $12.70, the price may retreat to around $10.
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