Chainlink’s LINK is trading at $21.2 as of 2:00 am EST, up 6% over the last 24 hours.
LINK price appears ready for an upward breakout driven by accumulation by institutions, a phenomenon that has been experienced over the last few days.
Chainlink price uptrend backed by whale accumulation
Chainlink’s supply has experienced an increase in wallets with large LINK holdings and a decrease in retail investor holdings, likely to catalyze gains in the altcoin.
According to data from on-chain data tracking firm Lookonchain, eight new wallets transferred more than 830,000 LINK tokens worth about $17.62 million at current rates from Binance, over the last few days. This reduces the balance of LINK on exchanges, contributing to decreasing selling pressure.
It seems that whales are buying $LINK!
We noticed that 8 fresh wallets withdrew 831,160 $LINK($16.72M) from #Binance in the past 2 days.
Address:https://t.co/bkikjTpUtyhttps://t.co/DaBt99fo8Ohttps://t.co/h8fjMdXiU4https://t.co/vcBkwRMUJMhttps://t.co/sD9YDQd4Sj… pic.twitter.com/77Y9RqF3t6
— Lookonchain (@lookonchain) March 9, 2024
More data from market intelligence firm Santiment shows that large investors have continued to accumulate LINK since December 2023. LINK wallets holding between 100,000 to 1 million LINK tokens have increased their holdings just like other large wallets holding between 1 million to 1 million, as seen in the chart below.
LINK balance by addresses. Source: Santiment
Whale accumulation and an asset price increase support a bullish thesis for the Oracle token.
LINK price bulls seek to set a new YTD high at $25
The Chainlink price has been trading in a large range between $17.6 and $21.7 over the last six weeks. Resistance from the range’s upper limit has frustrated any attempts to escape from this consolidation.
However, all the daily moving averages were facing upward, suggesting that the market conditions favored the upside. The relative strength index (RSI) was moving within the positive region at 60, above the midline. This supported the bull’s dominance in the market.
As such, increasing selling pressure from the current level would see the price climb to confront March 11’s high at $22.8. A daily candlestick close above this level would confirm a bullish breakout from the range, with the next target set at $25. Such a move would confirm a 20% uptick from the current price.
TradingView chart: LINK/USD daily chart
On the downside, the RSI was facing downward, a suggestion that the bears were booking profits on the latest rally to $22. If this continues, LINK could drop from the current levels toward $20 and later to the 100-day EMA at $18.
The last line of defense lies on the range’s lower limit at $17. LINK could continue moving within range for a few days before establishing a directional bias.
