The cryptocurrency market has entered the new year with a bullish tone, as altcoins begin to recover amid a slight decline in Bitcoin’s ($BTC ) dominance. From 58.12% on December 31, Bitcoin’s dominance has slipped to 57%, creating a more favorable environment for altcoins like Chainlink ($LINK ). Following a recent correction, LINK is showing signs of recovery and renewed strength.
Whale Accumulation Reflects Growing Confidence
Recent data highlights a surge in whale activity, signaling optimism about Chainlink’s future performance. Following a pullback to the critical support level of $20, whales have significantly increased their LINK holdings. Over the past 96 hours, more than 1.4 million LINK tokens—valued at approximately $30 million at an average price of $21.50—have been accumulated.
This aggressive buying by whales indicates growing confidence in LINK’s resilience and potential, even amidst broader market volatility.
LINK Holds Above Key Support Levels
The combination of whale accumulation and improving market sentiment has enabled Chainlink to maintain its position above crucial support zones. In November 2024, LINK broke out of a long-term descending triangle pattern, rallying to a local high of $30.80. However, a December correction brought the token back to a key support range between $18.70 and $22.90.
Despite the pullback, LINK has demonstrated strength by staying above this range and is currently trading at $23.28.
Key technical indicators suggest the possibility of a bullish reversal:
MACD (Moving Average Convergence Divergence): Indicates building momentum for an upward move.
RSI (Relative Strength Index): Currently trending above 50, reflecting increased buying pressure.
If LINK continues to hold above its support level, it could rally toward its recent high of $30. Conversely, failure to maintain support could expose the token to additional downside risks.
Outlook for Chainlink: What’s Ahead?
Chainlink remains a standout altcoin for 2025, supported by strong whale accumulation, robust support zones, and favorable technical indicators. Additionally, the dip in Bitcoin’s dominance provides a more conducive environment for altcoin rallies.
Investors should closely monitor LINK’s ability to maintain its position above the $22 support level, as well as its potential to rally toward $30. Should these levels hold, Chainlink could extend its upward trajectory in the coming months.
With solid fundamentals and growing market interest, Chainlink appears well-positioned for sustained growth in the near term.
