In December, LINK’s price is getting close to a situation where it might break out of an ascending triangle, and there are positive signs from on-chain indicators that support the idea that the price could go up.
The price of Chainlink’s LINK token has bounced back significantly, increasing by more than 240% from its lowest point of approximately $4.70 in June 2023. On-chain and technical indicators suggest that there’s a possibility for further upward movement in the upcoming days and weeks.
LINK’s Potential Breakout: Ascending Triangle Pattern
LINK’s price has been in a consolidation phase, forming what seems to be an ascending triangle pattern since November 2023. In the context of an uptrend, ascending triangles are considered bullish continuation patterns. These patterns typically resolve when the price breaks above the upper trendline, leading to a potential increase by the maximum distance between the upper and lower trendlines.
As December unfolds, LINK seems to be eyeing a breakout scenario, currently hovering around the upper trendline near $16. If it successfully surpasses this resistance level, the triangle breakout target could exceed $19.50, reflecting a 20% increase from the current price levels. The pattern suggests a potential bullish move in the coming days.
LINK/USD daily price chart. Source: TradingView
LINK’s Potential Rally: Supply Trends Point to Positive Outlook
Additional insights into Chainlink’s anticipated 20% rally in December 2023 come from scrutinizing data related to LINK supply on various crypto exchanges, represented by the red wave in the chart below.
As of December 3rd, the total LINK tokens held by crypto exchanges stood at about 150.39 million, marking the lowest since February 2020. This reflects a notable 19% decrease from the peak observed in August 2023 when exchanges held 185.71 million LINK tokens, coinciding with a substantial 150% surge in the token’s value.
LINK supply across all crypto exchanges vs. price. Source: Santiment
The diminishing supply on exchanges suggests that traders are opting to hold onto their LINK tokens rather than selling them for alternative assets. This trend indicates a potential for LINK to sustain its bullish momentum in 2023 if demand remains strong.
LINK’s Whales Accumulate: Strong Demand Continues
The demand for LINK tokens remains robust, especially among the wealthiest addresses, as indicated by data tracked by Santiment.
In a noteworthy development, the top 200 whale addresses associated with Chainlink have amassed LINK tokens worth $50 million since the start of November.
Chainlink top-200 whale holdings. Source: Santiment
This accumulation aligns with a substantial 50% surge in LINK’s market valuation, suggesting that these prominent holders believe in the token’s potential for further growth by New Year’s. The actions of Chainlink’s top holders indicate confidence in the cryptocurrency’s future value.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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