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Chainlink (LINK) is posting bullish performance as its price rose over 6% in the last 24 hours in the cryptocurrency market. Amid the price surge, Chainlink whales are engaging in massive accumulation, sparking bullish sentiment.
Whale accumulation sparks bullish sentiment for Chainlink
As spotted by Lookonchain, an on-chain tracker, a brand-new wallet has moved 744,604 LINK from Binance. The accumulated asset is valued at around $12.5 million. This is the latest in a series of withdrawals from exchanges.
The fact that the wallet was newly created suggests that the holder is looking to move the coins and keep them for the long term rather than preparing to sell. The development has sparked bullish sentiment among LINK holders.
It indicates that the asset is on a path of recovery and might overcome the broader market fluctuation. Notably, Chainlink has already hit oversold conditions with a Relative Strength Index of 33.89. The current whale rally could serve to catalyze price action for LINK.
With the continued accumulation in the Chainlink space, it will reduce sell pressure on major exchanges. Such development could cause prices to appreciate as demand increases amid reduced supply.
As of this writing, Chainlink is changing hands at $16.88, which represents a 5.21% increase in the last 24 hours. The asset earlier tested the $17 level but faced rejection after attaining a peak of $16.96. If the current whale interest succeeds in pushing LINK past $18, it might rally toward $20.
However, failure could see it plunge to $15.75. To maintain its bullish outlook, retail traders and investors need to increase their engagement, as the occasional whale accumulation has not been able to revive interest.
Trading volume is currently in the red zone, down by 32.59% at $873.24 million. An uptick in volume could support the price move toward the $20 target.
Can Chainlink reignite "Uptober rally"?
For Chainlink to be fully back on the "Uptober rally" track, volume boost remains key. In early September, a massive 77% increase in volume repositioned LINK on a bullish path. A rekindling of interest from other LINK holders could catalyze price action and set it on a rally.
On-chain analyst Ali Martinez has predicted that the technical chart reveals Chainlink has the potential to hit $28 if market conditions are right.
Meanwhile, Chainlink’s utility might be another trigger. The decentralized oracle service provider recently made headlines that positively impacted the token’s price. When market participants learnt that Chainlink would support the U.S. Department of Commerce to store macroeconomic data, it boosted the price.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team