Chainlink Meteoric Rise: Reaching for the Stars
Chainlink (LINK), the leading oracle network in the blockchain space, has been on a tear. The price has risen for three consecutive weeks, reaching its highest level since January 2022, pushing its market cap above $16 billion. This impressive rally coincides with increased activity from whales, hinting at a potential surge towards a 3-year high.
Whales Fueling Chainlink’s Ascent
On-chain analysis reveals a crucial role played by whales in Chainlink’s recent surge. Lookonchain identified a whale who transferred LINK tokens worth over $9.6 million from Binance to Aave (AAVE). This move was followed by borrowing 4 million worth of another token and depositing it back to Binance, potentially fueling further LINK purchases. This isn’t an isolated event. Etherscan data shows another whale moving $7.16 million worth of LINK to a self-custody wallet, while another transferred over $2 million to OKX.
Read more: Chainlink Bullish Surge: A 3-Year High Within Reach?
Whale activity is often seen as a bullish catalyst due to the sheer volume of their transactions. Interestingly, data from Nansen suggests a decrease in the number of LINK tokens held on exchanges, indicating whales and investors are holding onto their assets.
Fear of Missing Out (FOMO) Absent, Santiment Predicts Continued Climb
The current LINK surge is unique in the sense of lacking widespread FOMO (Fear of Missing Out) sentiment. According to Santiment, a crypto analytics firm, this lack of excessive retail investor excitement could be a positive sign. They believe the market often moves in the opposite direction of crowd expectations, implying a potential continuation of the LINK rally.
Read more: Chainlink (LINK):BlockTower Capital Drops $3.44 Million on LINK!
Technical Indicators Point Towards Continued Growth
The weekly price chart reveals a strong LINK recovery over the past few weeks. Notably, the price has flipped the crucial resistance level at $22.85 into support, signifying a significant bullish development. This level served as the highest swing high on March 11th, and its successful breach strengthens the current momentum.
Furthermore, the price has reached the 50% Fibonacci Retracement level and surpassed the ultimate resistance indicated by the Murrey Math Lines technical tool. The price also comfortably sits above the 50-week and 100-week moving averages, further solidifying the uptrend.
Based on these technical indicators, the immediate short-term target for LINK is projected to be $31.25, coinciding with the extreme overshoot zone on the Murrey Math Lines. In the long term, the price could potentially double and even retest its all-time high of $52.
Read more: Chainlink Rise: A $23 Surge and a Strategic Partnership with 21X!
A Cautionary Note
Despite the bullish outlook, it’s important to acknowledge potential risks. Should the price fall below the critical support level of $22.85, a retracement towards $20 could occur. Therefore, maintaining a cautious approach and closely monitoring price action remains crucial for investors.
Conclusion
Chainlink’s recent price surge and positive on-chain activity paint an optimistic picture. With whales accumulating and technical indicators hinting at continued growth, a potential climb towards the 3-year high of $37.40 is not out of the realm of possibility. However, investors should remain vigilant and monitor price action to navigate any potential setbacks.
