Chainlink (LINK) has stirred interest despite a sluggish cryptocurrency market. Recent on-chain activity suggests a potential surge, with whales accumulating millions and technical indicators hinting at a bullish breakout.

Whales Accumulate LINK Tokens

Lookonchain, an on-chain analytics firm, reported that 54 newly created wallets withdrew a significant amount of LINK tokens—2.08 million worth $30.28 million—over a seven-day period on a major cryptocurrency exchange. This substantial accumulation by whales and institutions signifies their confidence in LINK as it approaches a resistance level.

Technical Analysis Points to Bullish Trend

Experts analyzing LINK’s technical chart identified a golden crossover on the hourly timeframe, a bullish indicator where the 50-day EMA (Exponential Moving Average) crosses above the 200-day EMA. Additionally, LINK is currently consolidating near a resistance level of $14.80.

Key Levels to Watch: $14.90 and $16.50

A strong close above $14.90 on the 4-hour timeframe could propel LINK towards potential targets of $15.50 and even $16.50 in the coming days, according to analysts. Reaching $14.90 could also trigger liquidations worth $4.9 million on short positions, as per Coinglass, a further bullish signal.

Caution: Short Sellers Remain Active

While the data suggests a potential breakout, it’s important to note that short sellers are currently more active than long buyers. This indicates some resistance that LINK needs to overcome.

LINK’s Recent Performance

At the time of writing, Chainlink (LINK) is trading around $14.40, experiencing a slight dip in the last 24 hours. While the trading volume has increased by 2%, it still suggests a lower level of overall investor participation. Despite the recent consolidation, LINK has managed to maintain stability over the past week, with a slight upside of 1.3%. However, it’s important to acknowledge that LINK has lost over 20% of its value in the last 30 days.

Conclusion: A Wait-and-See Approach

The recent whale accumulation and bullish technical signals paint an optimistic picture for LINK. However, short-seller activity, and LINK’s overall price performance in the last month warrant a cautious approach. Whether LINK surpasses the $16.50 mark remains to be seen, but the coming days will likely be crucial in determining its future trajectory.