Whale accumulation and technical indicators suggest LINK may rebound from the crucial $21 support level.
The increase in trading volume, active addresses, and the decrease in reserves enhance confidence in LINK's bullish potential.
Chainlink [LINK] has made waves in the cryptocurrency market, with 362,380 LINK withdrawn from Binance by 9 new wallets within just 48 hours, valued at $8.19 million. This significant whale activity highlights growing interest in LINK's potential, sparking speculation about price breakthroughs.
As of the time of writing, Chainlink's trading price is $21.87, down 4.62% in the past 24 hours. However, these trends suggest that momentum may be about to shift, potentially reshaping 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 around the current level of $21, within an important support area. This level could act as 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.
Chainlink's transaction count has increased by 0.76% in the past 24 hours, rising to 10,000 transactions. The rise in trading activity indicates an increase in on-chain activity and renewed interest from market participants.
Moreover, this growth is often associated with price volatility, indicating that Chainlink may be preparing for significant fluctuations. Thus, this metric highlights market expectations for LINK's next price movement.
The increase in active addresses reflects confidence in the network
In the past day, the number of active addresses has also increased by 0.83%, reaching 5.7K. This growth is consistent with the accumulation by whales, indicating higher participation within the Chainlink network.
Moreover, the increase in active addresses often signifies an ongoing rise in adoption, thus enhancing bullish sentiment. Therefore, 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 indicates that as holders move tokens off exchanges, potentially for long-term holding, selling pressure has eased.
Additionally, the combination of whale accumulation and reduced reserves strengthens the case for a bullish breakout.
Recent whale activity in LINK, combined with increased trading volume, active addresses, and decreased exchange reserves, strongly indicates a bullish outlook.
Therefore, as long as Chainlink maintains its key support level of $21.87, it seems poised to reclaim the resistance level of $32 in the near future.
