Chainlink's (LINK) Price Soars High; Ascending Triangle Pattern Suggests Potential 20% Rally
Summary:
Chainlink (LINK) has experienced a 240% rebound from its annual low, with potential for further increases. Technical indicators show LINK's price consolidating within an ascending triangle pattern, predicting a likely 20% rise in December 2023 if surpassed said resistance level. Furthermore, data reveals a drop in LINK held by crypto exchanges, indicating traders' favor in retaining LINK tokens which may fuel the token's ongoing bull run. Additionally, the top 200 LINK addresses have accumulated $50M worth of tokens since November, insinuating a belief in the token's continuing value increase.
The value of Chainlink (LINK) has seen an upward surge of more than 240% from its yearly low of nearly $4.70 in June 2023. On-chain and technical indicators suggest that this progressive trend in LINK's valuation might continue for the forthcoming days and weeks.
The price of LINK has been observed to be in a steady state of consolidation within what seems to be an upward triangle pattern since November 2023. Upward triangle patterns, when observed during an uptrend, are usually indicative of a bullish continuation. These are confirmed when the cost surges above the upper trendline and elevates as high as the distance between the upper and lower trendlines.
In December 2023, LINK seems to be on track towards a similar breakout, currently hovering near the upper trendline of the triangle near $16. If it manages to surpass this resistance level decisively, the target following the triangle breakout could exceed $19.50, signifying a 20% rise from the current values.
Insights into a potential 20% rally in LINK's value in December 2023 emerge from data that tracks LINK supply on cryptocurrency exchanges (denoted by the red wave of the chart). On Dec. 3, approximately 150.39 million LINK tokens were held by crypto exchanges, the lowest since February 2020. This is a 19% decrease from the 2023 high of 185.71 million LINK in August, which transpired alongside LINK's value appreciating by 150%.
This decreasing trend of LINK supply on exchanges seems to indicate a preference of traders to hold onto their LINK tokens rather than sell them for other assets. A continued demand for LINK tokens might boost its 2023 bull run if the demand remains constant.
Data by Santiment indicates that the richest LINK addresses continue to show a strong preference for LINK tokens. The top 200 whale addresses of Chainlink have accumulated LINK tokens worth $50 million since the inception of November. This period saw a 50% rise in LINK's market value, which suggests that whales have been accumulating the token, even at its peak values. This implies that Chainlink's top holders anticipate an increased value by New Year's. Note that this article offers no investment advice or recommendations. Investments and trading moves involve risk and readers should conduct their own thorough research prior to making a decision.
Published At
12/3/2023 10:51:39 AM
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