Chainlink price held up well against Bitcoin’s drop on October 10 following higher-than-expected CPI inflation data. The crypto market slid by 1.2%, but the LINK price remained steady against USDT and gained 0.2% against BTC. Chainlink whale activity surged, signaling large holders could be accumulating the token. Is it time to buy LINK before the price takes off?
Meanwhile, Ronin, the EVM blockchain tailored for gaming, has decided to integrate the Chainlink cross-chain interoperability protocol (CCIP) to reinforce the security of its bridge and free up resources to accelerate its adoption. This is yet another customer paying for the services in LINK tokens purchased off the open market, increasing demand, which is a primer for LINK price surge.
Will Whale Accumulation Spark Chainlink Price Rally?
Data from Santiment shows whales are scooping up LINK tokens after the recent correction. When whales accumulate a token, it often signals confidence in the asset’s future value, leading to increased demand and upward price pressure as the market interprets whale activity as a bullish indicator. The large holder count increased from 489 to 502 between Oct. 1 and 8, showing whales are coming back.
Further, data from IntoTheBlock shows that the whale netflow inflow has increased since October 8. This means whales are accumulating more of that asset. The 7-day MVRV ratio drooped from 8.12% to -4.41% in the last two weeks, signaling that more holders are now at a loss, which can influence investor behavior.
This data is further supported by increased LINK Spot outflows. According to Coinglass data, investors have been consistently withdrawing LINK tokens from exchanges since September 15. Do they sense a bull market about to start for Chainlink price?
This observation is further supported by LINK price action, which suggests LINK could be about to surge by 19%. LINK price has been down 0.3% in the last 24 hours, with the rest of the crypto market trading at $10.61.
LINK Price Analysis: Bullish Setup Hints 26% Breakout To $16, But Not Before This
Chainlink price prediction shows the asset is in a bullish setup, supported by an ascending triangle characterized by accumulation and growing bullish momentum.
The key resistance zone between $12.50 – $13.00 represents a significant hurdle. This area has been tested multiple times, and a break above this could lead to a substantial rally.
There are two potential price targets upon a successful breakout above $13. The first target is a 19.84% rise, projecting a move to $13.80, and the second target shows an additional 26.64% gain, reaching as high as $16.00.
Chainlink Price Analysis Chart
Conversely, $10.00 is a solid support level that aligns with the ascending trendline. If the price falls below this, it would invalidate the current bullish pattern. With the Chainlink price currently at $10.64, it is near this support, offering a potential low-risk entry point if the trendline holds.
Whale accumulation further strengthens the bullish outlook. A breakout above $13.00 would confirm a larger bullish trend, potentially driving gains beyond $16.00. If LINK consolidates above $13.00, it could signal the start of a new bullish cycle, with the potential to test higher resistance levels into 2025.
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