TLDR
- Over 10 million LINK withdrawn from exchanges by whales, indicating strong buying pressure.
- 98.9% of active LINK holders are net buyers, pointing to bullish long-term sentiment.
- LINK exchange balances at lowest level since December 2022, reducing selling pressure.
- Analysts project LINK could reach $23.61 short-term and $46 mid-term if resistance breaks.
Chainlink (LINK) has recently entered a favorable accumulation zone, with growing whale activity signaling potential price movements. On-chain data reveals massive withdrawals of LINK from exchanges, further supporting a bullish market outlook. Analysts now expect LINK to target $23.61 in the short term, with a mid-term goal of $46, assuming it surpasses key resistance levels. This accumulation phase could pave the way for Chainlink’s continued growth in the decentralized finance (DeFi) sector.
Record Whale Activity Supports Bullish Outlook
Recent on-chain data indicates a significant uptick in LINK withdrawals from centralized exchanges. A notable example includes a newly created wallet that withdrew over 770,000 LINK, valued at approximately $14 million, from Binance.
This pattern of whale activity is not limited to a single wallet. A group of 39 wallets collectively moved nearly 10 million LINK, worth around $188 million, from the same exchange. These actions suggest a strong accumulation phase, which could indicate confidence in the future performance of the token.
The movement of LINK off exchanges is seen as a sign of reduced selling pressure. Exchange balances of LINK have fallen to levels not seen since December 2022, marking a significant shift in market dynamics.
The decline in supply on exchanges reflects increasing confidence among investors, particularly large holders, or “whales,” who appear to be positioning themselves for a potential breakout. This trend, coupled with the Chainlink Foundation’s recent buyback of 63,000 LINK, reinforces the idea of rising bullish sentiment in the market.
Strong Demand From Active LINK Holders
Data from Glassnode reveals that 98.9% of active LINK addresses are net buyers, showing an overwhelming trend of accumulation among holders. This indicates that most participants in the market are investing with a long-term perspective, rather than selling.
The Holder Accumulation Ratio, which tracks the behavior of LINK holders, is at one of its highest levels, further reinforcing the bullish sentiment.
The steady increase in net buyers supports the view that LINK could experience sustained growth in the coming months. Market analysts suggest that with continued accumulation, LINK may break through resistance levels, potentially pushing its price higher. This accumulation by active holders could help mitigate any potential selling pressure, which would typically limit upward momentum.
Short-Term Price Target Set at $23.61
Currently, LINK is trading near $18.22, showing signs of forming a breakout pattern. Analysts are looking closely at the $20.19 resistance level, which, if broken, could lead to a move toward the next target of $23.61. This target aligns with wave 3 of the Elliott Wave structure, suggesting that the price could gain momentum after overcoming this critical level.
The current range between $19.20 and $19.70 is seen as a key resistance zone for LINK. A breakthrough above this range would likely trigger more buying, pushing the price closer to the $20 psychological mark and beyond. For now, the focus remains on how LINK behaves at these critical levels, as breaking through them could signal the start of a more significant upward movement.
Institutional Confidence and Growing Ecosystem
Chainlink’s growing institutional backing further strengthens the case for a LINK breakout. Recent partnerships, such as the collaboration with S&P Global to create a stablecoin risk rating framework, add to Chainlink’s credibility in the traditional finance sector. These partnerships help to solidify Chainlink’s position as a leader in the DeFi oracle market.
However, while the project’s technology is widely recognized, Chainlink faces the challenge of increasing demand for its token. Expanding marketing efforts and attracting more institutional investments will be crucial in sustaining its momentum. As institutional interest continues to rise, the demand for LINK could also increase, potentially supporting a long-term price rally.
