Chainlink’s price momentum has recently sparked speculation of a possible rally to $30, as key technical indicators align.
Analysts World of Charts suggest that LINK, currently trading around $13.67, may be poised for further growth if it breaks above a crucial descending trendline that forms the top of a bullish flag pattern. The recent uptick has generated renewed interest, fueled by robust whale activity and broader market trends.
Chainlink Price To Rally As Whale Activity Hits Three-Month High
One of the main drivers behind Chainlink’s recent momentum has been whale activity. According to Santiment, large holders with balances between 100,000 and 10 million LINK have accumulated an additional $369.8 million worth of the token over the past seven weeks.
This increase represents an 8.2% growth in holdings, reaching a three-month high. Whale accumulation often signals confidence in the asset’s long-term potential, as these investors typically hold large stakes with expectations of significant returns.
The recent Chainlink price breakout has taken LINK above the $13.65 mark for the first time since July, indicating increased buying interest. This milestone, alongside high whale accumulation, suggests that large investors are positioning for further price gains. Concurrently, according to a Chainlink price prediction from CoinGape, the token may be on the verge of a 50% rally, backing the bullish sentiment.
Exchange Outflows Suggest Reduced Sell Pressure
Data from CryptoQuant shows a trend of consistent LINK outflows from exchanges, with spot exchange netflows turning increasingly negative. On November 8th, LINK outflows spiked to a 30-day high, reflecting a reduced willingness among traders to sell.
Such outflows are often seen as a bullish indicator, as they suggest that holders are moving their assets off exchanges, potentially to hold them long-term. Lower sell-side pressure could set the stage for LINK’s continued price appreciation. With fewer tokens available for sale on exchanges, any increase in demand could drive up the price faster.
Chainlink has also seen a surge in on-chain activity. According to IntoTheBlock, the number of active addresses has risen significantly, growing from 1,930 to 2,750 within a few days. Increased activity on the network can indicate greater interest in the asset and signal potential price movement.
🧑💻 Here are crypto’s top Real World Assets (RWA’s) by development. Directional indicators represent each project’s ranking rise or fall since last month:
➡️ 1) @chainlink $LINK 🥇
➡️2) @synthetix_io $SNX 🥈
➡️3) @duskfoundation $DUSK 🥉
➡️4) @oraichain $ORAI
📈5) @skyecosystem… pic.twitter.com/t5nnyIWV0g— Santiment (@santimentfeed) November 5, 2024
Additionally, Santiment reports a spike in Chainlink’s development activity, which has risen by over 14,000% in the past month. This high level of engagement from developers suggests strong commitment to building and expanding the Chainlink ecosystem, a factor that can bolster investor confidence.
LINK Price Trend & Derivatives Data Shows Bullish Sentiment
In the derivatives market, data from Coinglass reveals a 17% increase in Open Interest, now reaching $252 million. This rise in Open Interest coincides with an increase in funding rates, indicating that traders are opening long positions on LINK. Rising Open Interest often reflects growing confidence among traders, as they anticipate further gains.
The combination of whale accumulation, reduced exchange supply, rising on-chain activity, and bullish derivatives data creates a favorable environment for Chainlink. If the bullish flag pattern is cleared, as predicted by World of Charts, LINK price could be on its way to challenging the $30 mark in the coming weeks.
At the time of writing, Chainlink price is trading at $13.67, up 9.21% over the past 24 hours with a 24-hour trading volume of $585 million.
