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Chainlink’s technical chart shows a bullish trend, with LINK/USDT breaking above a double-bottom pattern, indicating a structural shift.
Key Notes
Smart Money investors have been accumulating Chainlink (LINK), making it the third-most accumulated token in the past week.Network activity has also surged, with new addresses up by 25%, active addresses up by 59%, and zero-balance addresses up by 143%.Indicators like MACD and Chainlink Money Flows suggest the potential for LINK to reach $20 by the year's end.While investors are looking for the next big opportunity in the altcoin space, it seems Smart Money investors are silently accumulating Chainlink LINK $12.16 24h volatility: 0.8% Market cap: $7.62 B Vol. 24h: $349.87 M . As Bitcoin BTC $63 732 24h volatility: -0.2% Market cap: $1.26 T Vol. 24h: $33.18 B leads from the front taking the broader market higher, investors are setting their eyes on Chainlink along with other DeFi tokens.
Turns out that in the past week, Chainlink has been the third-most accumulated token by Smart Money. This suggests that the LINK price could experience significant gains in the coming months.
Furthermore, the network activity surrounding Chainlink also reinforces the bullish stand. For e.g. the new Chainlink addresses have surged by 25% while the active addresses have surged by 59% and the zero-balance addresses have surged by a massive 143%.
Courtesy: IntotheBlock
These figures indicate that traders are preparing to engage in the LINK market, similar to the actions of Smart Money. The rise in trading activity, coupled with increasing investor interest, could propel LINK toward the $20 price target.
Also, the LINK holder distribution witnesses some key shifts. For example, investors holding between 1-10 million LINK tokens have increased their holdings by 2%. On the other hand, those with 10 million LINK coins have reduced their holdings by 5%.
This variation in liquidation along with increased buying and selling activities highlights an optimistic outlook for the LINK price movement ahead.
Chainlink Technical Chart and Expectations
Amid the recent strong interest from individual as well as institutional investors, the Chainlink price action has shown some promising signs on the technical chart. For e.g. the LINK/USDT pair just broke above the neckline of a double-bottom pattern, which shows strong chances of a trend reversal ahead.
This pattern emerged following the market low from the August 5th crash. Chainlink consolidated near its support level before making an upward move. After retesting this support, the double bottom was confirmed, and LINK broke through short-term resistance, signaling a structural shift.
The market is now in a correction phase, with the potential for a drop to the trendline before another upward surge.
Courtesy: TradingView
On the other hand, some key indicators like MACD have also turned bullish with the histogram bars showing increased buying volumes thereby supporting the view that the LINK price can surge to $20 in the near future.
Besides, the Chainlink Money Flows (CMF) indicator is also positive suggesting a strong influx of money into the altcoin. This upward trend aligns with Smart Money’s accumulation, indicating that a 70% return on investment could be possible if LINK hits the $20 target by year-end.
Chainlink Labs has also been making some key partnerships in recent times. Last month, it partnered with Fireblocks to develop a platform for stablecoin issuance and management.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chainlink (LINK) News, Altcoin News, Cryptocurrency News, News
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
