- Whales may help kick-start Chainlink’s bull run.
- LINK has to go above a key resistance level in order to start another rally.
Chainlink [LINK] displayed a rally over the last few weeks, which allowed it to inch closer to the top 10 cryptos by market capitalization. Considering this performance, can the token enter the top 10 list anytime soon?
Chainlink is popular among whales
While LINK’s price rallied, its popularity among whales also increased. Inasmuch, on the 29th of November, crypto analyst Ali pointed out that Chainlink had witnessed its largest spike in whale transactions for 2023.
#Chainlink | Yesterday, $LINK witnessed its largest spike in whale transactions for the year, with over 2,600 transactions exceeding $100,000 each! pic.twitter.com/IoaxjEZjJv
— Ali (@ali_charts) November 29, 2023
Santiment also had an interesting update, pointing out that a massive amount of older coins had moved wallets. Such moves are generally followed by “big price movements.”
🔗📊 #Chainlink has quietly had a massive amount of older coins moving wallets today. Big older coin movement typically is followed by big price movements, which is what occurred September 15th, resulting in a +31% $LINK price climb the following 2 weeks. https://t.co/Cb1TGg3hvG pic.twitter.com/Vh7zYrE6oa
— Santiment (@santimentfeed) November 29, 2023
Therefore, if history is to repeat itself, investors might witness another bull show from LINK in the coming days.
The possibility of a LINK rally is…
According to CoinMarketCap, LINK’s price moved down marginally in the last 24 hours. At the time of writing, it was trading at $14.52 with a market capitalization of over $8 billion, making it the 12th largest crypto.
But before LINK begins its bull rally, the token must go above a key resistance level.
AMBCrypto’s analysis of Hyblock Capital’s data revealed that the token’s liquidation increased substantially when its price reached the $15.4 mark. Therefore, if the token has to increase its market cap, it must go above that mark.
Source: Hyblock Capital
However, quite a few metrics remained bullish, increasing the chances of an uptrend. For instance, as per CryptoQuant, LINK’s exchange reserve was low, meaning that investors were buying the token at press time.
The evidence of high buying pressure was further compounded by other metrics. AMBCrypto found that LINK’s Supply on Exchanges dropped in the recent past, while its Supply outside of Exchanges increased.
Read Chainlink’s [LINK] Price Prediction 2023-24
Additionally, a look at Coinglass’ data revealed that Chainlink’s Open Interest dropped while its price went sideways. This suggested that the possibility of a trend reversal was high.
However, it was interesting to see that the supply held by top addresses remained flat at the time of writing.
Source: Santiment
