Upon assessing the price movements of Chainlink (LINK) and Ethereum (ETH), striking similarities emerged in the patterns exhibited by both cryptocurrencies.
From 2018 to 2024, LINK experienced three distinct peaks and troughs, reaching a peak near $52, followed by a sharp decline to point B, and subsequently a gradual recovery phase leading to point C.
This particular price action closely resembled the trajectory of Ethereum during a similar timeframe, hinting at the possibility of LINK replicating ETH’s historical performance.
On the flip side, Ethereum displayed a more pronounced trajectory, surging to unprecedented levels in later stages, notably evident in the robust uptrend post-2020 that saw it achieve a new peak at $4800.
If Chainlink stays on course with its emulation of ETH’s past behavior, there is potential for a push towards the $90 threshold. Such a scenario could indicate a bullish sentiment surrounding LINK, provided prevailing market conditions remain favorable.
LINK’s Swelling Open Interest
Furthermore, LINK’s futures open interest (OI) skyrocketed to a record-breaking $770.27 million, surpassing figures for both Toncoin (TON) and Tron (TRX).
This surge in LINK’s OI, nearly triple that of TON and double that of TRX, indicated a rising level of trader confidence or speculative interest in anticipating its future price movements.
Historically, during this period, LINK reached its peak price in nearly two years, signaling a resurgence in interest and perhaps speculative optimism regarding its market prospects.
The recent sharp uptick in LINK’s OI signified increased market activity, suggesting traders may be strategically positioning themselves for potential appreciation or hedging against existing positions.
This trend hinted that LINK’s dynamics were significantly impacted by derivatives trading, a factor that could either stabilize the market or add to its volatility.
Whale and Institutional Accumulation
Analysis of DEX positions unveiled a surge in LINK holdings by whales and Smart DEX Traders, with buying surpassing selling activity.
This spike in buying aligned with LINK’s price surges, indicating that major holders might be accumulating LINK in preparation for anticipated price rises.
Such robust buying pressure likely played a role in stabilizing or driving up LINK’s market value. If this trend persists, further appreciation could be on the horizon.
Moreover, World Liberty Financial, led by Donald Trump, expanded its LINK and AAVE holdings, acquiring an additional 37,052 LINK for $1 million and 685.4 AAVE for $247,000.
These purchases totaled $2 million, securing 78,387 LINK at an average price of $25.51, which has since appreciated by $232,000, indicating an 11.6% gain.
Subsequently, Zach Rynes lauded the U.S. President-elect on X (previously known as Twitter):
“Donald Trump is the Michael Saylor of Chainlink $LINK”
This aggressive accumulation underscored the fund’s optimistic outlook on LINK, hinting at potential gains if this trend endures.