Chainlink (LINK) has experienced a significant rebound, surging by over 240% from its yearly low in June 2023. This impressive recovery has caught the attention of market participants, who are now speculating on the possibility of further gains in the days and weeks ahead. Several on-chain and technical indicators suggest that the price of LINK could continue to rise, as it emerges from an ascending triangle pattern that has been forming since November 2023.
Ascending triangles are considered bullish continuation patterns, especially when they appear during an uptrend. In the case of LINK, the formation of the ascending triangle pattern indicates that a breakout may be imminent. If the price manages to break above the upper trendline, which is currently around $16, it could trigger a sharp upward move. Analysts predict that the breakout target for LINK would then be over $19.50, representing a 20% increase from its current price levels.
Furthermore, data tracking the supply of LINK across crypto exchanges reinforces the bullish outlook for the cryptocurrency. As of December 3, crypto exchanges held only 150.39 million LINK tokens, the lowest amount since February 2020. This notable decrease in supply, which coincided with a 150% increase in the token’s value, suggests that traders are opting to hold onto their LINK tokens rather than sell them for other assets. The diminishing supply indicates strong demand for LINK, indicating a potential continuation of its 2023 bull run.
Another positive indication for LINK’s price comes from the behavior of its wealthiest addresses. Data tracked by Santiment reveals that Chainlink’s top 200 whale addresses have accumulated $50 million worth of LINK tokens since the beginning of November. This accumulation of LINK tokens aligns with a 50% rally in the cryptocurrency’s market valuation, suggesting that these large investors believe LINK’s value will continue to rise in the near future.
As the price of Chainlink’s LINK token bounces back from its lows, the market sentiment surrounding the cryptocurrency remains bullish. The ascending triangle pattern signals a potential breakout, with a target price exceeding $19.50. The decreasing supply of LINK on crypto exchanges and the accumulation by wealthy investors further support the expectation of future growth. However, it is important to consider potential market risks and volatility when making investment decisions. Overall, Chainlink’s LINK is poised for further gains in the coming months, attracting the attention of traders and investors alike.