Bullish pattern emerges in Chainlink price amid increase in whale holdings
Cryptocurrency Dynamics:
Chainlink, the digital currency, is presently hovering at $14.20. Despite a stagnant few days, it's intriguing to note that a bullish rebound may be on the horizon. LINK's price, currently 45% above its 2021 low, seems to have caught the attention of large investors, also known as 'whales.'
Data from Santiment reveals that these whales have been steadily acquiring LINK over the past few months. Specifically, whales with holdings between 100,000 and 1 million tokens now control 173 million LINK, up from a low of 143 million in November 2020. The increase equates to an additional 30 million coins, valued at roughly $420 million.
Furthermore, whales with holdings ranging between 1 million and 10 million coins have boosted their ownership to 203 million from 183 million in February. This growing interest indicates a potential rebound in the coming days.
Another significant factor supporting Chainlink is the continuous decline in the supply of LINK tokens on exchanges. The exchange supply, as a percentage of total supply, has dropped from 21% in March to 19%, its lowest level since March 13. A reduced exchange balance often signals a bullish move, as holders prefer to keep their tokens off exchanges, decreasing the likelihood of sell-offs.
A likely catalyst for Chainlink could be its partnerships with major institutions like Swift and the Depository Trust & Clearing Corporation (DTCC). DTCC, which processes more than $3.7 quadrillion yearly, is considering using Chainlink's Cross-Chain Interoperability Protocol to modernize mutual fund data dissemination. Similarly, Swift Network, handling over $150 trillion per year, is keen on employing Chainlink's solutions to move tokenized assets for global financial services companies.
Tech Talk:
Analyzing the 12-hour chart, we can observe that LINK has rebounded in recent weeks, having soared from a low of $9.9720 in April to around $14. The coin currently trades above the 50-period moving average.
A noteworthy pattern that has formed is a falling wedge, known for being a bullish reversal sign. Additionally, LINK has created an inverse head and shoulders pattern. As such, LINK is expected to continue its uptrend, with bulls aiming for a price level of $20, which is 30% above the current value.
While short-term price predictions based on the latest partnerships are yet to materialize, the influence of whale activity and the cooperative partnerships could bring about increased volatility and potential price surges.
- The crypto technology landscape is witnessing an surge in interest, with large investors, or 'whales', showing increasing holdings of Chainlink (LINK), a digital currency, currently trading at $14.20.
- In the blockchain domain,Data from Santiment shows that whales with holdings between 100,000 and 1 million tokens control 173 million LINK, a significant increase from a low of 143 million in November 2020, possibly heralding a bullish rebound.
- The crypto market, including Ethereum and Tron, is abuzz with the potential rebound of LINK, given the growing interest of whales with holdings ranging between 1 million and 10 million coins, who have boosted their ownership to 203 million from 183 million in February.
- On the technology front, the 12-hour chart analysis indicates a bullish outlook for LINK, with the coin trading above the 50-period moving average and forming a bullish reversal pattern (falling wedge and inverse head and shoulders), suggesting a price level of $20, 30% above the current value, could be reached in the near future.
