Chainlink (LINK) Price Breaks Resistance Level Amid Bearish Market
As a reader, you may be interested to know that Chainlink (LINK) has recently surpassed the $6 resistance level despite prevailing bearish conditions in the altcoin markets. This development comes as on-chain data indicates that participants in the Chainlink network are now seeking a bullish price reversal.
One significant event that contributed to this positive momentum was the successful tokenization test conducted by Swift network in collaboration with Chainlink, CitiBank, and other global financial institutions. Shortly after this announcement, LINK’s price broke above the $6 barrier on September 4, thanks to the influence of bullish whales countering the prevailing bearish sentiment.
LINK Whales Increase Holdings by $12 Million Following Swift Tokenization Tests
According to recent on-chain data, Chainlink whales have responded positively to Swift’s tokenization test results. Before the announcement, whales holding between 100,000 and 1 million LINK tokens owned a total of 188 million tokens. However, since the test results were released, these whales have accumulated an additional 2 million LINK tokens, worth approximately $12 million in today’s market. This increase in whale holdings suggests that large institutional investors are gaining confidence in Chainlink’s potential role in facilitating collaboration between DeFi and traditional financial institutions. If this trend continues, it could lead to increased market liquidity and potentially drive LINK’s price to new highs in the coming weeks.
Exchange Reserves Decline Despite Price Bounce
Despite a small 4% price bounce between August 31 and September 4, Chainlink holders are not rushing to sell their tokens for profit. On-chain data reveals that LINK Exchange Reserves have been steadily declining, indicating that holders are moving their tokens out of exchanges. Between August 17 and September 4, approximately 1.8 million LINK tokens were withdrawn from exchange reserves. This decline in exchange reserves, valued at around $12 million, further supports the notion that Chainlink network participants are anticipating a bullish price reversal.
LINK Price Prediction: Bullish Scenario Targets $10
From an on-chain perspective, it appears that the LINK price has the potential to reclaim the $10 level if bearish sentiment in the altcoin market subsides. This prediction is supported by the Global In/Out of Money Around Price data, which shows that if LINK’s price surpasses $6.50, it would encounter minimal resistance on its way to $10. With strategic retail investors aligning their trades with bullish whales, there is a possibility of a Chainlink price rally reaching $10. However, if negative sentiment prevails, bears could push the price below $5. In that scenario, support from addresses that acquired LINK tokens at an average price of $4.95 could provide some stability. If this support fails, the price could eventually drop towards $4.
Hot Take:
The recent developments surrounding Chainlink and its collaboration with Swift have generated optimism among market participants. The increase in whale holdings and the decline in exchange reserves indicate growing confidence in Chainlink’s potential. While there are bullish predictions for LINK’s price, it is important to consider the impact of market sentiment and potential support levels. As an investor, it is crucial to stay informed and monitor these factors to make informed decisions about your investments in Chainlink.
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