Chainlink Price Analysis: LINK Rally To $20 Gains Momentum On Major Accumulation Trend

The consolidation trend in the crypto market is prolonged for the second week of July. The Bitcoin price wavering sideways below $58500 with short bodies and higher wicks indicates no clear initiation from buyers to sellers. A similar uncertainty was recorded in Chainlink price analysis, and hope for a rebound arises as the altcoin sees major accumulation at crucial support.

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Chainlink Price Analysis: $110 Million Pulled from Exchanges in Two Weeks

The recent market correction took a notable toll on Chainlink’s price, developing a V-top reversal in daily charts. The bearish turnaround tumbled the asset from $19.2 to $11.05 low registering a loss of 42.5%.

However, the falling price witnessed renewed demand pressure at the lower trendline of a falling wedge pattern. This dynamic support conciding close with the $12.2 level and 200W EMA created a strong accumulation zone for investors.

Thus, the LINK price immediately traded at $12.75, while the market cap jumped to $7.75 Billion.

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According to recent data from crypto analytics firm IntoTheBlock, Chainlink (LINK) has experienced negative exchange netflows for the past two weeks, with approximately $110 million worth of LINK being withdrawn from exchanges. This significant outflow of LINK suggests an ongoing accumulation phase, where investors are moving their holdings off exchanges and into long-term storage.

Exchange netflows for $LINK have been negative for the past two weeks, with roughly $110 million worth of $LINK being withdrawn from exchanges during this period.

Such activity is typically associated with an accumulation phase, indicating that investors are moving $LINK off… pic.twitter.com/jSvKAkUQ5F

— IntoTheBlock (@intotheblock) July 12, 2024

Such activity is typically indicative of investors’ confidence in the asset, signaling their intention to hold LINK for an extended period rather than trading it in the short term.

If the chart pattern holds true, the Chainlink price analysis hits a potential 28% recovery to challenge the pattern’s overhead trendline at $16.45.

The ongoing downtrend will continue until the wedge pattern is intact. Thus, a potential breakout from its upper boundary is needed to signal the end of correction. If sustainable, the buyers could lead the post-breakout rally to $19.2, followed by $22.8, and $28.62.

Technical Indicator:

• Exponential Moving Average: A potential bearish crossover between the 50-and-200-day EMA could accelerate the selling pressure and prolong the ongoing correction.
• Moving Average Convergence Divergence: A flattish trend in MACD (blue) and signal (orange) line with several crossovers indicate a neutral market sentiment.