The ongoing consolidation in Chainlink indicates a bullish view for LINK holders. On January 30, 2024, an on-chain analytics firm, IntoTheBlock, posted on X (formerly Twitter) that, in the last 30 days, LINK whales have added a significant 57 million LINK tokens to their wallets. This data highlights that crypto whales are capitalizing on the ongoing price consolidation.
Crypto whales accumulating LINK tokens
In addition to the data from IntoTheBlock, another on-chain analytics firm, Lookonchain, recently made a post on X that in the last 24 hours, a fresh wallet added a significant 424,259 LINK, worth around $6.26 million. These data points from IntoTheBlock and Lookonchain seem to highlight that now is the opportune time to add LINK tokens to the wallet.
However, this massive accumulation by these crypto whales is reflected in the price of LINK tokens. Currently, LINK is trading near $15, and in the last 24 hours, it experienced over a 4% upside momentum. If we look at the LINK token over a more extended period, in the last 7 days, the price of LINK has surged by over 8%, and in the last 30 days, due to its price consolidation, it experienced a slight 0.8% downside momentum. Additionally, in the year 2023, the LINK token showed outstanding performance, experiencing over 160% price growth.
LINK’s technical analysis and potential breakout
According to expert technical analysis and considering all this data along with the current price of LINK, it is observed that LINK is consolidating within a very narrow range, fluctuating between $12.8 and $16.5 for the last three months. However, after finding support at the $12.8 lower level, LINK is now moving toward $16.5, suggesting a potential breakout from this consolidation zone.
Previously, LINK underwent a 520-day consolidation phase between $5 and $8.75 from May 9, 2022, to October 16, 2023. After the breakout, LINK experienced a substantial price surge of over 85% in just 21 days. If LINK breaks out of the current consolidation, we may witness a significant upside momentum, possibly reaching $18 and then $28. The overall cryptocurrency market is currently bullish, further supporting the likelihood of a breakout.
Moreover, examining the LINK chart in the 4-hour time frame reveals the formation of a bullish golden crossover, indicating a positive trend. Additionally, on social media platforms like X, traders and investors are expressing anticipation for a bullish move in LINK. However, it is essential to conduct thorough research before engaging in any trades, as this analysis is based solely on technical indicators and market trends.
