Despite confusion in the cryptocurrency world, large investors like crypto whales and institutions are increasingly interested in Chainlink (LINK), currently ranked as the 11th-largest cryptocurrency. Data from on-chain analytics firm Lookonchain reveals that these entities are consistently accumulating LINK tokens.
On February 5, 2024, four newly created wallets withdrew a combined total of 119,583 LINK tokens, valued at approximately $2.1 million, from Binance, the world’s largest cryptocurrency exchange. This significant accumulation of LINK tokens by these wallets confirms a bullish outlook.
Chainlink’s Recent Surge and Resistance Outlook
On February 2, 2024, Chainlink experienced a notable surge in transaction volume, as reported by IntoTheBlock, an on-chain analytics firm. During this period, over 72.24 million LINK tokens were transacted, amounting to a value exceeding $1.3 billion. This surge coincided with a strong breakout in LINK’s price, marked by a large green candle, following 84 days of consolidation between $12.8 and $16.5.
IntoTheBlock highlights an upcoming resistance zone, potentially posing a barrier for bullish momentum. Significant resistance is identified at the $20 level, with over 5300 addresses collectively holding more than $8.5 million worth of LINK tokens. Notably, this resistance emerged shortly after a massive $19 million LINK token unlock. Looking ahead, Chainlink is set to unlock another 412.5 million tokens, adding to the dynamic of the cryptocurrency’s price action.
Chainlink’s Current Performance and Potential Breakout
As of the latest update, the LINK token is hovering around $18.6, having experienced a 4.5% upside momentum in the past 24 hours. Looking at LINK’s performance over longer periods, it has shown exceptional gains, with over 27% upside momentum in the last 7 days and over 30% in the last 30 days.
The significant surge in price, recent breakout from the consolidation zone, accumulation of LINK tokens by whales, and record transactions all underscore the growing interest from investors and institutions in LINK.
Source: TradingView
Expert technical analysis indicates a bullish outlook for LINK on the daily timeframe, nearing breakout confirmation. If the daily candle closes above $19, it could signal the potential for LINK to reach the $28 level in the near future. Historical data from technical analysis suggests that breakout from consolidation often leads to significant surges in asset prices.
Notably, LINK experienced a similar consolidation breakout from May 2022 to October 2023, resulting in a surge of over 100% within a few months. This historical precedent suggests the possibility of a similar move this time around.
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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