Chainlink retests bullish breakout: Can LINK bounce to $23?

Key Takeaways

LINK has successfully retested a bullish price action pattern and is poised for a 20% rally. Whale transactions ranging from $1 million to $10 million have surged by over 1,400%.

Chainlink [LINK] has successfully broken and retested a bullish price action pattern and has continued its upside momentum.

Whales have shown strong interest and confidence in the token, with accumulation continuing despite the ongoing price rally.

Whales activity and price surge

Recently, a well-followed crypto expert shared a post on X (formerly Twitter), revealing that whales have purchased over 8 million LINK tokens in the past month.

Source: X (Formerly Twitter)

During this period, LINK has surged by over 58%, rising from $12.33 to $19.40.

Amid this price rally, the asset has broken through multiple hurdles, including a descending trendline and a key horizontal level at $18, which has historically acted as a reversal point.

LINK is continuing its upward climb, registering a 9% gain in the past 24 hours and holding strong near the $19.41 level.

During this period, investor and trader participation has surged, resulting in a 6.5% increase in trading volume compared to the previous day.

Whales participation skyrockets

The on-chain analytics platform IntoTheBlock reveals that whale participation is still rising despite the ongoing price rally.

Data shows that transactions ranging from $1 million to $10 million have surged by over 1,400%, while those ranging from $100,000 to $1 million have increased by 463%.

Source: IntoTheBlock

This indicates confidence in the asset’s future price increase, which likely follows the successful retest of the breakout at a key level.

Chainlink: Key levels to watch 

AMBCrypto’s technical analysis reveals that LINK has recently broken out and retested a bullish double-bottom pattern and is now poised for a significant price uptick.

Source: TradingView

If the asset’s upside momentum continues, LINK could soar by 20% and may reach the $23 level in the near future. However, this is only possible if market sentiment remains unchanged and the asset holds above $18.

Meanwhile, LINK’s Relative Strength Index (RSI) was 82 at press time, indicating that the asset is in overbought territory and may face a potential correction in the coming days.

Exchanges’ inflow and potential sell-off

Looking at the upside momentum, LINK holders appear to be taking advantage of the price surge by offloading their holdings, as reported by the on-chain analytics tool CoinGlass.

Data reveals that, over the past 24 hours, exchanges have recorded an inflow of approximately $1.74 million worth of LINK tokens. Such an inflow hints at a potential sell-off, which could slow down the upside momentum.

Source: CoinGlass

However, when combining all metrics, it appears that bulls are currently dominating the asset, and the price may continue its upward momentum until it reaches the next resistance level.