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Chainlink (LINK) is gaining traction on the cryptocurrency market, with analysts pointing to a potential bullish scenario that could fuel significant gains. According to crypto analyst Ali, LINK appears to be in the middle of a bullish retest at its breakout zone, which might pave the way for a rise to $22, or perhaps $28.
A bullish retest happens when an asset breaks through a critical resistance level, then pulls back to reaffirm that level as new support before continuing its upward trend. In LINK's case, the token recently broke above $20, and the recent rebound hints at a retest of this level, which could set it up for the next leg up.
If LINK successfully retests the $20 level and maintains buyer momentum, the next target could be $22 in the short term, with $28 as a possible extension if bullish pressure persists.
Whales in accumulation
On-chain data reveals that large investors have been actively adding to their LINK holdings, acquiring tokens worth tens of millions of dollars.
In the past week, Ali reported that whales accumulated over 1.6 million Chainlink (LINK) in two weeks. This surge in whale activity often serves as a bullish signal, suggesting that major players expect future price gains.
The fresh accumulation spree comes at a time when LINK has been consolidating after its recent rally.
Chainlink rose steadily from a low of $12.20 to reach $20.28 on July 21, where it encountered resistance. The LINK price fell amid a broader market sell-off to a low of $17.17 before rebounding.
The recovery has marked three straight days, reaching an intraday high of $19.56 early in the Monday session. At press time, Chainlink was up 3.53% in the last 24 hours to $19.53.
Vladislav Sopov
U.Today Editorial Team