Chainlink (LINK) price emerges as one of the biggest gainers among the top 20 cryptocurrencies in the past 24 hours despite showing mixed signals on its technical indicators.
The BBTrend indicator, while remaining positive since November 25, has weakened significantly. Despite these mixed signals, LINK price shows potential for a 42% surge to $30 if it manages to break through current resistance levels.
Chainlink Whales Are Not Accumulating Assets
A significant decline in Chainlink whale holdings over the past two weeks signals a possible shift in sentiment.
The number of wallets holding between 100,000 and 1 million LINK has fallen from a yearly peak of 558 on November 19 to 533 currently, suggesting that large investors may be taking profits or redistributing their holdings.
Addresses with between 100,000 and 1 million LINKs. Source: Santiment
Tracking whale behavior is crucial as these large holders can significantly influence price movements and market sentiment. The decrease from 558 to 533 wallets in this category indicates a distribution phase where the largest holders are reducing their positions.
This sustained decline in whale accumulation could signal downward pressure on LINK’s price in the short term.
LINK BBTrend is at its lowest level in weeks
Chainlink’s BBTrend (Bollinger Bands Trend) indicator has weakened significantly, dropping from its peak of 18.2 on November 26 to just 0.44 currently, while maintaining positive territory since November 25.
BBTrend helps identify trend strength and potential reversals by measuring price movement relative to Bollinger Bands.
LINK BBTrend. Fonte: TradingView
A potential move into the negative territory of BBTrend could signal a trend reversal and increased selling pressure for LINK.
Negative BBTrend indicates price below the middle Bollinger Band, suggesting bearishness and possible further decline in LINK.
LINK Price Prediction: A Potential New 42% Surge
LINK’s recent attempt to break above $22, a level not seen since 2022, suggests potential for significant upward movement.
If successful in its next attempt, the cryptocurrency could target $25 before advancing towards $30, which would represent its highest value since 2021 and translate into substantial 42% price growth from levels current.
LINK Price Analysis. Source: TradingView
On the other hand, failure to maintain upward momentum could trigger a downward correction.
In this scenario, LINK price could test initial support at $16.18, with the potential for a further decline to $13.80 if this support level fails to hold.
The article Chainlink (LINK) Could Rise 42% to Hit 3-Year High, According to Analysis appeared first on BeInCrypto.
