Potential Upsurge for LINK: Could $50 Be Within Reach?
Over the past 24 hours, LINK experienced a notable 1.65% price increase, further extending its market gains over the previous week to 22.35%. This indicates the possibility of additional price movements on the charts.
Currently, market sentiment and recent price action suggest the potential for double-digit gains for LINK if the current bullish trend continues.
Analyst Ali noted that LINK has taken the initial steps towards a significant bullish move by breaching a crucial resistance level in its trading pattern known as a bullish flag. This consolidation within a set support and resistance zone typically leads to upward momentum, confirmed by the successful breach of the resistance level.
The chart, complete with Fibonacci retracement levels, points to a phase where slight pullbacks may occur before the price resumes its upward trend, with a potential target of $58.64, nearly triple its current value of $22.906.
Analysis from CryptoCrypto suggests that the accumulation of LINK by whales will significantly influence this upward price movement.
Whale Activity Propelling LINK’s Surge
Data from IntoTheBlock highlights a surge in activity by large investors in LINK. These investors, typically holding between 0.1% to 1% of the total supply, have played a vital role in recent price movements.
In the last 24 hours, the number of significant transactions involving LINK spiked to 593, totaling 10.3 million LINK valued at $258.51 million.
These substantial transactions, coupled with price surges and bullish breakouts, suggest a dominance of buying activity in the market during this period.
The increase in active and new addresses also indicates heightened market involvement, contributing to the recent price increase.
Data over the past 24 hours shows a rise in the number of participating addresses in LINK transactions to 5,810, with 1,860 new addresses coming onboard.
On a weekly basis, these figures reflect a 39.02% and 40.42% rise, respectively, underscoring a strong bullish sentiment among market participants.
Continued trends in significant transactions, new address adoption, and active address engagement are likely to further bolster LINK’s positive trajectory.
Anticipating a Tightening Supply for LINK
On-chain data reveals significant outflows of LINK from crypto exchanges, surpassing inflows into the market.
Using the Aggregated Exchange Netflow to track asset deposits and withdrawals across various exchanges, current netflows show a negative balance of 149,670 LINK.
This high withdrawal rate indicates that participants are leveraging the bullish trend by opting to store their LINK outside exchanges for long-term purposes, potentially leading to a supply squeeze.
Should this withdrawal trend persist and netflows remain negative, it could pave the way for an extended price surge for LINK, possibly resulting in a supply shortage.