Analyst Eyes Bullish Chainlink Rally as 29k Wallets Amass 295M LINK Worth $2.2B

Chainlink (LINK) trades in the positive zone over the past week, with whales accumulating $2.2 billion LINK as on-chain data shows no resistance ahead. 

Amid the passive crypto market trend, Chainlink (LINK) is up by over 5% in its cumulative seven-day performance. While LINK’s 24-hour trading volume has declined by nearly 50%, renowned crypto analyst Ali Martinez recently shared insights about the Chainlink market.

29k Wallets Amass $2.2B LINK

Quoting data from analytic firm IntoTheBlock, Martinez argued that Chainlink has managed to establish a resilient support zone within the range of $6.63 and $6.88. The analyst revealed that 29,000 addresses capitalized on the support range to build their portfolios. 

According to him, the wallets cumulatively acquired 295 million LINK tokens. Based on LINK’s current market value, the accumulated token amounts to a dollar value of over $2.2 billion. 

1/3 #Chainlink established strong support between $6.63 and $6.88. Nearly 29,000 addresses acquired a 295 million $LINK within this range.

As long as #LINK maintains above this level, there’s strong bullish sentiment since on-chain data shows no major resistance barriers ahead. pic.twitter.com/m03eEePQqn

— Ali (@ali_charts) August 11, 2023

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Furthermore, Martinez noted that provided LINK trades above the stated support level, investors can expect a more bullish rally for the asset. Citing on-chain data, he argued that there seems to be no resistance barriers ahead of LINK. 

Whales Stock on Chainlink

Moreover, it appears that the larger players in the crypto space have taken notice of Chainlink’s support zone. 

Martinez highlighted that crypto whales have been engaging in an accumulation spree over the past few weeks. In particular, the whales have taken stock of 13 million LINK tokens worth nearly $100 million within the last 14 days. Arguably, these developments have favored LINK holders, compounding buying pressure.

Meanwhile, the analyst mentioned that traders looking for a breakout in the trend would have to wait some more in light of the expected bullish rally. He highlighted a reduction in Chainlink’s network activity over the past three weeks. In particular, hashes of significant transactions declined, dropping from 527 to 118.

Despite this current slowdown in network activity, Martinez suggests that the potential for a breakout is not entirely ruled out. He believes an uptick in the count of significant transactions could potentially serve as an indicator of an impending breakout for Chainlink.