Over the span of just 48 hours, Chainlink [LINK] has attracted attention in the cryptocurrency market as nine new wallets withdrew 362,380 LINK valued at $8.19 million from Binance. This significant activity by whales sheds light on the increasing interest in LINK’s potential and triggers discussions about a possible surge in its price.
Currently, Chainlink is being traded at $21.87, with a 4.62% decrease in the last 24 hours. Nevertheless, these fluctuations indicate an imminent change in momentum that could potentially alter its course.
The Next Move for LINK: Determined by Key Resistance Levels
An analysis of the technical aspects reveals that Chainlink is facing a crucial juncture. Having peaked at $32 in November, LINK retracted to its present position around $21, resting on a significant support level. This threshold holds the promise of acting as a foundation for another bullish surge towards $32.
However, if this support falters, Chainlink might witness a further decline, putting lower support levels to the test. Consequently, traders must diligently track these price levels as they delineate LINK’s immediate future.
Increasing Transactions Indicate Heightened Activity for LINK
In the past 24 hours, Chainlink’s transaction count rose by 0.76%, reaching 10,000. This upsurge in movement underlines an increased on-chain activity and a revitalized interest among market participants.
Moreover, such an uptick frequently corresponds to price volatility, hinting at a possible substantial movement for Chainlink. Consequently, this metric accentuates the market’s anticipation of LINK’s upcoming price trends.
Boost in Active Addresses Reflects Network Confidence
The number of active addresses also saw growth, increasing by 0.83% in the previous day to reach 5,700. This surge aligns with whale accumulation and signifies a deeper engagement within Chainlink’s network.
Furthermore, a rise in active addresses typically denotes a surge in adoption, reinforcing an optimistic sentiment. Hence, this data bolsters the notion that LINK’s network is gearing up for further expansion.
Reduced Exchange Reserves Could Alleviate Selling Pressure
In the last 24 hours, Chainlink’s exchange reserves dropped by 0.26% to 161.5 million. This decline indicates a decrease in selling pressure as holders transfer tokens off exchanges, possibly to hold them for the long term.
Additionally, when combined with whale accumulation and decreasing reserves, this situation strengthens the case for an optimistic breakout.
The recent whale activities surrounding LINK, coupled with increasing transactions, active addresses, and diminishing exchange reserves, strongly suggest a positive future trend.
Hence, Chainlink seems prepared to challenge its $32 resistance level soon, provided it can uphold its crucial support at $21.87.