chain link (Add) The price has surged more than 240% from its yearly low of around $4.70 in June 2023. This could rise even further in the coming days and weeks, according to on-chain and technical indicators, as discussed below.
LINK price nears ascending triangle breakout
LINK price is getting stronger from within ascending triangle Pattern from November 2023.
When ascending triangles form during an uptrend, they are bullish continuation patterns. They resolve when the price breaks above the upper trendline and rises to the maximum distance between the upper and lower trendlines.
LINK appears to be eyeing a similar breakout scenario in December 2023, now trading around the triangle’s upper trend line near $16. Let’s say it decisively rises above the said resistance level. Then, its triangle breakout target would exceed $19.50, which is 20% above current price levels.
Thus, if it decisively rises above the said resistance level its triangle breakout target will be higher at $19.50, which is 20% above the current price level.
Chainlink supply on exchanges has declined
More clues about Chainlink’s potential 20% rally in December 2023 come from data tracking LINK supply across crypto exchanges (red wave in the chart below).
As of December 3, crypto exchanges held approximately 150.39 million LINK tokens, the lowest since February 2020. This represents a 19% decline from the 2023 peak of 185.71 million LINK in August, coinciding with a 150% increase in the token’s value.
The decreasing supply on exchanges indicates that traders prefer to hold LINK tokens rather than sell them against other assets. Therefore, LINK is more likely to continue its bullish rise in 2023 if demand does not subside.
link whales are gathering
According to data tracked by Santiment, there remains strong demand for the LINK token among its richest addresses.
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Notably, Chainlink’s top 200 whale addresses have accumulated $50 million worth of LINK tokens since the beginning of November.
This coincides with a 50% surge in LINK’s market valuation, suggesting that whales have accumulated the token at its all-time high. Simply put, the top holders of Chainlink believe that its value will increase further by the New Year.
This article does not constitute investment advice or recommendations. Every investing and trading move involves risk, and readers should do their own research when making decisions.
