While the broader cryptocurrency market experiences a decline, oracle service provider Chainlink (LINK) has registers 3%+ and a high of $16.4 . With this move, Chainlink has extended its gains to more than 15% in the last two weeks.
LINK’s current price is $15.68, with a 24-hour trading volume of $426.69M ,A circulating supply of 568.10M LINK coins and a maximum supply of 1.00B LINK coins. LINK ranks 14 by market cap.
Significant Buying Activity Hints at Potential Market Shift
Chainlink (LINK) has witnessed substantial buying activity, hinting at a potential market shift. Following a recent price decline, a significant transaction involving a major player was detected, involving the acquisition of 601,949 LINK at an average price of $14.81, amounting to an impressive $8.9 million.
Interestingly, this substantial purchase was strategically distributed across three new wallets, indicating a deliberate and calculated move rather than ordinary trading activity. This surge in buying could suggest a noteworthy change in the market dynamics for Chainlink. Investors and industry observers will be closely monitoring the implications of this significant transaction on the future trajectory of LINK.
Also Read: Ripple vs. SEC: What the Latest Courtroom Developments Mean for Your Crypto Holdings
Analyst Predicts $20 Price Target
Renowned crypto analyst Ali Martinez highlights a noteworthy development in the Chainlink (LINK) market. According to Martinez, Chainlink has successfully formed a sturdy demand zone spanning from $14.8 to $15.2. Within this range, a significant 17,650 addresses collectively acquired 85.12 million LINK tokens. This accumulation suggests a solid foundation of demand in this price range.
With the absence of notable resistance levels in the immediate future, Martinez speculates that LINK is gearing for further advancement, potentially targeting the $20 mark.
Chainlink Chart Analysis Points to Crucial Juncture
The latest Chainlink (LINK) chart analysis unveils a market on the brink of intriguing developments. Currently hovering around the 50-day Exponential Moving Average (EMA), a key indicator often delineating bullish and bearish territories, LINK is at a critical juncture. The proximity to the 50 EMA holds significance, with a decisive move above it potentially emboldening bullish sentiments, while a failure to breach may strengthen bearish outlooks.
As of now, LINK displays signs of consolidation, navigating what traders colloquially term a “crab” market—moving laterally with no distinct long-term trajectory. This consolidation phase involves the asset oscillating around a central price point, presently the 50 EMA.
A positive growth scenario for LINK entails maintaining support at the 50 EMA, situated around $14.80, followed by a robust upward push in both volume and price. Such a move would signify a successful defense of this level and could set the stage for a bullish reversal. The immediate resistance to monitor is approximately at the $15.00 mark; surpassing this could mark the end of the consolidation phase and the onset of an upward trend.
Conversely, if LINK fails to sustain its position above the 50 EMA, a potential regression to test the local support level around $13.30 may occur. A breach below this support could reinforce the bearish sentiment, potentially leading to further losses in the market. Traders and investors are keenly watching these key levels for insights into the future trajectory of Chainlink.
Overall, the recent buying activity and technical analysis suggest that Chainlink is positioned for a potential upward move, with a target price of $20. However, investors should remain cautious and monitor key support and resistance levels to make informed decisions.
About The Author
