Chainlink (LINK) price rebounds and may continue to rise
The price of Chainlink (LINK) has seen a significant rebound, increasing by over 240% from its low in June 2023. Based on various on-chain and technical indicators, there is a possibility that the price will continue to rise in the coming days and weeks.
LINK price approaching a breakout from an ascending triangle pattern
Since November 2023, LINK’s price has been consolidating within an ascending triangle pattern. Ascending triangles are bullish continuation patterns that occur during an uptrend. When the price breaks above the upper trendline, it often leads to a significant increase in value.
In December 2023, LINK is approaching a potential breakout scenario as it nears the upper trendline of the triangle pattern. If it surpasses this resistance level, the target for the breakout could be over $19.50, representing a 20% increase from the current price levels.
Decreasing supply of LINK on exchanges
An additional factor supporting the potential rally of LINK in December 2023 is the decreasing supply of LINK tokens on crypto exchanges. As of December 3rd, exchanges held the lowest amount of LINK tokens since February 2020. This decline in supply suggests that traders prefer to hold onto their LINK tokens rather than sell them for other assets.
If demand for LINK remains strong and supply continues to diminish, it further strengthens the possibility of continued upward momentum for the token.
Accumulation of LINK tokens by whales
The data tracked by Santiment indicates that there is ongoing accumulation of LINK tokens among the top 200 whale addresses. These whales have accumulated $50 million worth of LINK tokens since November.
This accumulation coincides with a significant increase in LINK’s market valuation, indicating that these top holders believe the value of LINK will continue to rise. Their confidence in the token’s future performance adds to the bullish sentiment surrounding LINK.
Hot Take: Chainlink’s Rebound and Potential for Further Growth
The recent rebound of Chainlink (LINK) from its yearly low has generated optimism among investors and analysts. With the price approaching a potential breakout from an ascending triangle pattern and the decreasing supply of LINK on exchanges, there are strong indications that LINK may continue to rise in the coming days and weeks.
Furthermore, the accumulation of LINK tokens by whales further supports the belief that the value of LINK will increase. As we approach the end of 2023, it will be interesting to see if these factors contribute to a sustained bull run for Chainlink.
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