At the current moment, Chainlink (LINK) is priced at $11.09, showing a 6.16% decrease in value over the last 24 hours. With a circulating supply of 630 million LINK tokens, the market capitalization stands at around $6.95 billion.
Despite the recent drop in price, the trading volume in the past day has been robust, reaching $594.2 million, indicating active trading activity among investors.
Following a period of consolidation in the $11 to $12 range after a downward trend, Chainlink is now facing the crucial $13 resistance level, which has consistently acted as a significant barrier. A breakthrough above this level could indicate a shift towards a bullish trend.
Potential Upsurge and Critical Resistance
Renowned crypto analyst Michaël van de Poppe remains optimistic about Chainlink’s potential for a breakout in the coming weeks if it manages to surpass the $13 resistance level. According to him,
“the key to trigger further upward movement.”
Source: X
If Chainlink successfully breaches the $13 mark, there is a possibility of a price surge towards $18, translating to approximately a 40% increase from the breakout point. The Relative Strength Index (RSI) is currently indicating a neutral stance, suggesting there is room for an upward trajectory.
Analysis of On-Chain Metrics: Surge in Large Transactions
Over the last day, there were 192 large transactions recorded on the Chainlink network, matching the peak observed on 25th October. This surge signifies a notable rise from the low of 54 transactions recorded on 19th October.
Source: IntoTheBlock
The uptick in large transactions indicates heightened interest or substantial movement of capital by significant holders.
Moreover, the analysis of In/Out of the Money data suggests that 37.51% of addresses (262.38k) are currently in a profitable position, having bought LINK at prices below $11.08. Conversely, 58.90% of addresses (411.97k) are facing losses, having purchased at higher rates, potentially leading to strong resistance levels around the $11.81-$13.17 range.
Exchange Flows: Impact on Price Movement
Recent data from IntoTheBlock reveals a net inflow of +105.43k LINK to exchanges within the past 24 hours, indicating a possibility of short-term selling pressure. However, over the previous week, there was a net outflow of -181.08k LINK, suggesting broader accumulation trends among holders.
When observing the 30-day change, there has been a net outflow of -662.22k LINK, indicating sustained accumulation behaviors over the long term.
Source: IntoTheBlock
These patterns of inflows and outflows suggest potential short-term selling activities within a larger context of extended accumulation strategies.
While the recent increase in exchange inflows might be a transient phenomenon, the significant outflows over the past month reflect a high level of optimism regarding LINK’s future prospects.