Whale Accumulation Fuels Potential Breakout Rally to $30

Chainlink Price Prediction: LINK, the native cryptocurrency of the Chainlink oracle network, has lagged behind the broader market’s recent recovery trend. On Monday, the coin price showcased a failed breakout from a notable resistance of $20.8, reflecting the sellers continuing to defend the higher levels. Over the week, the Chainlink price tumbled 7.7% to currently exchange hands at $19.8. Will Bitcoin price potential breakout from $70000 push LINK coin back to a recovery trend?

Also Read: BlackRock’s Bitcoin Holding Surpasses MicroStrategy Amid $2 Bln Net Inflows This Week

A Cup and Handle Pattern Signals Major Uptrend

An analysis of the daily time frame chart shows the Chainlink price developed a well-known bullish cup and handle pattern amid the recent recovery trend. The reversal pattern signals a smooth transition from a downtrend to an uptrend displayed by a U-shaped recovery.

On February 2nd, the coin price gave a bullish breakout from the pattern’s neckline resistance and the buyers escaped from a nearly 2-year sideways trend. The post-breakout rally pushed the LINK price 23.7% high to $21.6 a level last visit in January 2022.

However, the supply pressure at $20.8 has shifted the recovery trend sideways indicating a post-really consolidation. On March 5th, the Chainlink price showcased a long-wick rejection candle at $17.5n support reflecting the buyer’s accumulation that assisted in the market dip.

Also Read: CPI, PPI, & Ethereum Dencun Upgrade: What To Expect From Crypto Market This Week?

Whales Bets Bullish with $16.72 Million LINK Withdrawal

Lookonchain, the Onchain data tracker recently reported that eight new wallets have withdrawn 831,160 LINK tokens, worth approximately $16.72 million, from Binance within two days. This significant movement suggests whale investors are showing a strong interest in Chainlink, potentially indicating a bullish outlook for the cryptocurrency. 

It seems that whales are buying $LINK!

We noticed that 8 fresh wallets withdrew 831,160 $LINK($16.72M) from #Binance in the past 2 days.

Address:https://t.co/bkikjTpUtyhttps://t.co/DaBt99fo8Ohttps://t.co/h8fjMdXiU4https://t.co/vcBkwRMUJMhttps://t.co/sD9YDQd4Sj… pic.twitter.com/77Y9RqF3t6

— Lookonchain (@lookonchain) March 9, 2024

Despite the waning recovery trend in price action, these large-scale transactions hint at a strategic accumulation of assets, indicating a high potential for a renewed recovery trend. With sustained buying, the LINK price is likely to chase the pattern’s theoretical target of $30, registering a potential growth of 52%.

Also Read: Coinbase’s Bitcoin Market Share Climbs To 60% After ETF Approval

Technical Indicator

• Pivot Levels: As per the traditional pivot level, the Link price may face overhead supply pressure at $21.7, $24.15, followed by $27.4.
• Moving Average Convergence Divergence: A bearish crossover between the MACD and signal line reflects the sellers are the driving force of the current price movement.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.