As Bitcoin (BTC) crosses the $102K mark, signaling a bullish recovery in the crypto market, the decentralized finance (DeFi) sector is witnessing renewed interest. The Crypto Fear and Greed Index has risen to 57, indicating growing market optimism. In response, the DeFi token market cap has surged to an impressive $160 billion, with Chainlink (LINK) emerging as one of the top performers, boasting an 18.71% gain over the past week.
Chainlink’s Bullish Price Surge: A Closer Look at the Technicals
Chainlink’s price action has been nothing short of impressive, with a 35% surge in just four days. On the daily chart, LINK’s price action shows four consecutive bullish candles, following the formation of a long-legged Doji candle on January 13. This price movement has pushed Chainlink above key resistance levels, including the $24 mark. Furthermore, the token has avoided a bearish crossover between the 20- and 50-EMA lines, signaling strong bullish momentum.
Currently, Chainlink is trading above the 23.60% Fibonacci retracement level at $23.84, completing a double-bottom pattern. The relative strength index (RSI) also supports the bullish narrative, maintaining an upward trajectory. If the uptrend continues, Chainlink could target $31, with further potential gains reaching $38.42. On the downside, the critical support level is near the 50-EMA line at $21.35.
Whale Accumulation and Strong On-Chain Metrics
In addition to price action, the accumulation of LINK tokens by whales signals growing bullish sentiment. Recently, a whale withdrew 142,448 LINK tokens worth $3.38 million at an average price of $23.74. This move reflects increasing institutional interest in Chainlink and the potential for significant price appreciation.
A whale has withdrawn 142,448 $LINK worth $3.38M from #Binance at an average price of $23.74.
— Onchain Lens (@OnchainLens) January 17, 2025
Address: 0xefd155d24814618e49f421920671e8b9a24033a6 pic.twitter.com/VvAHPrAsYU
On-chain metrics also support the bullish outlook, with a significant rise in large transactions and active addresses on the Chainlink network. The volume of large transactions has surged from $35.63 million to $185.57 million, while active addresses have grown from 4.18K to 5.33K.
Derivatives Market Activity Signals Continued Bullish Momentum
Derivatives data further reinforces the bullish outlook for Chainlink. Open interest has increased by 17.17% in the past 24 hours, reaching $1.09 billion. With a stable funding rate near 0.010% and a long-to-short ratio skewed heavily toward bullish positions, traders remain confident in Chainlink’s potential for continued growth.
In conclusion, Chainlink’s strong price action, whale accumulation, and positive on-chain and derivatives metrics suggest that the token is well-positioned for an extended bullish rally in the coming months.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Chainlink (LINK) Gains Momentum as Whales Accumulate 1.35M Tokens and Price Eyes $25
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