Chainlink (LINK) has captured the attention of analysts and investors alike with its recent surge beyond the critical $13 resistance level, achieving a remarkable 35% gain. This breakout has not only sparked optimism but also marked a potential turning point for LINK, which had struggled to maintain upward momentum since late July. With market sentiment seemingly shifting in favor of Chainlink, many anticipate further upward movement for this innovative cryptocurrency.
Link’s Bullish Momentum Backed by Whale Activity
Supporting this positive outlook, recent data from on-chain analytics firm Santiment highlights that LINK whale activity has reached a three-month high. Large holders are accumulating LINK in significant quantities, signaling increased confidence among major investors. This heightened whale activity is often seen as a precursor to sustained rallies, suggesting that Chainlink’s recent surge could be the beginning of a prolonged upward trend.
Chainlink Whales Waking Up
For the first time since July, LINK has managed to break past the $13.65 mark, indicating a significant shift in its price dynamics. This breakout coincides with critical data points that suggest a bullish outlook for the asset. Notably, Chainlink has decoupled from the broader altcoin market, showcasing a distinct price performance amidst a recovering market. A key indicator of this shift is the spike in whale activity, which has reached a three-month high. Stakeholders with holdings between 100K to 10M LINK have accumulated a staggering $369.8 million worth of the token over seven weeks, reflecting an 8.2% increase in their holdings.
Potential for Continued Growth
The accumulation by Chainlink whales, coupled with its ability to break through key resistance levels, suggests that LINK is poised for continued growth in the weeks ahead. As the broader market shows signs of recovery, Chainlink’s decoupling from other altcoins may position it as a leader in the altcoin space. Investors are keeping a close eye, as the recent price movement and whale behavior hint at sustained bullish momentum for LINK.
LINK Testing New Supply Levels
Currently trading at $13.5, Chainlink has successfully surpassed the 200-day moving average (MA) at $12.9, a critical level that indicates a strong, long-term bullish outlook. This breakout has reinforced positive sentiment around LINK’s price trajectory. To maintain its upward trend, it is essential for LINK to hold the 200-day MA as support, as this level often marks the transition between bearish and bullish phases.
While LINK displays strength above $13, a healthy retracement to approximately $12.5 could provide the necessary momentum for further upside if it holds as support. Such a pullback would allow bulls to consolidate gains and establish a stronger foundation for the next upward move.
Looking Ahead: Key Levels to Watch
Traders are eyeing $14.5 as the next significant supply zone, where LINK may encounter resistance as it approaches this level. If LINK manages to push beyond $14.5, it would indicate robust demand and potentially pave the way for even higher levels in the coming weeks. With whale activity and overall market sentiment supporting further gains, the future looks promising for Chainlink.
