Whale accumulation and technical indicators suggest that LINK may rebound from the critical support level of $21.
The increase in trading volume, active addresses, and the decrease in reserves have bolstered confidence in LINK's bullish potential.
Chainlink [LINK] has made waves in the cryptocurrency market, with 9 new wallets withdrawing 362,380 LINK valued at $8.19 million from Binance in just 48 hours. This significant whale activity highlights growing interest in LINK's potential, sparking speculation about a price breakout.
As of the time of writing, Chainlink's trading price is $21.87, having fallen by 4.62% in the past 24 hours. However, these trends hint at a potential shift in momentum, which could reshape its trajectory.
Key resistance levels may determine LINK's next move.
Technical analysis shows that Chainlink is at a critical moment. After soaring to $32 in November, LINK has retraced to the current level near $21, which is in an important support region. This level has the potential to become a launch point for another bullish attempt, targeting $32.
However, if it cannot be maintained, Chainlink may decline further, testing lower support levels. Therefore, traders should closely monitor these price levels as they determine LINK's short-term outlook.
The continuous growth in LINK's trading volume suggests that activity is brewing.
The number of transactions for Chainlink has increased by 0.76% in the past 24 hours, climbing to 10,000 transactions. The rise in trading activity indicates increased on-chain activity and has rekindled market participants' interest.
Additionally, this growth is often associated with price volatility, indicating that Chainlink may be preparing for significant fluctuations. Therefore, this metric highlights market expectations for LINK's next price movement.
The increase in active addresses reflects network confidence.
In the past day, the number of active addresses has also grown by 0.83%, reaching 5.7K. This increase aligns with whale accumulation, indicating higher participation within the Chainlink network.
Moreover, the increase in active addresses often indicates a growing adoption rate, thereby enhancing bullish sentiment. Thus, this data supports the view that the LINK network is poised for further expansion.
The decline in foreign exchange reserves may limit selling pressure.
Chainlink's exchange reserves have decreased by 0.26% in the past 24 hours, to 161.5 million. This decline suggests that as holders transfer tokens off exchanges, possibly for long-term holding, selling pressure has eased.
Furthermore, the combination of whale accumulation and decreasing reserves strengthens the case for a bullish breakout.
