Chainlink Price Eyes Mayor Reversal as Accumulation Intensifies
Highlights
- The formation of a falling wedge pattern formation is often indicated as the maturity/end of the prevailing correction trend.
- The fresh recovery in LINK price will face overhead supply at the $16.5 and $18.67 mark.
- The intraday trading volume in the LINK coin is $314.2 Million, indicating a 64% gain.
Since the onset of May, the Chainlink coin has been under the buying sphere showcasing a price from $12.35 to $14.6. This bullish turnaround of 18.15% teasing a bullish breakout from the wedge pattern signals an early sign of trend reversal. With the Bitcoin price surge above $63000, the altcoins are gaining sufficient momentum to drive a sustainable recovery.
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Is LINK Price Heading to $20?
Amid the recent market consolidation, the Chainlink price showed notable resilience above the $12.7 support. The altcoin rebounded twice from this support within three weeks showing that buyers are accumulating this asset at the market dip.
The renewed recovery has propelled the LINK price to $14.6 and given a decisive breakout from the wedge pattern. The two converging trendlines of this setup signal the weakening of bearish momentum and prepare the buyers for a bullish reversal.
According to a recent analysis by crypto analytics firm IntoTheBlock, Chainlink (LINK) has exhibited significant signs of accumulation over the past month. Despite fluctuating market conditions, there has been a pronounced negative net flow of LINK tokens from cryptocurrency exchanges, indicating that more tokens are being withdrawn than deposited.
Despite recent price movements, data from the past month shows a negative net flow from exchanges for $LINK, indicating accumulation.
During this period, the total net outflow amounted to nearly 3.6 million $LINK. pic.twitter.com/YnCHUNQqB2
— IntoTheBlock (@intotheblock) May 6, 2024
This trend is highlighted by a substantial net outflow of approximately 3.6 million LINK tokens during the observed period. Such movements typically suggest that investors are moving their assets off exchanges to hold them in private wallets, often interpreted as a bullish signal reflecting investor confidence in potential future price appreciation.
If the breakout sustains, the LINK price could drive a rally to a potential target of $18.67, followed by $20.37 and $22.8.
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Technical Indicator
- BB Indicator: The LINK price from the midline of the Bollinger Band indicator indicates the bullish sentiment is returning to this asset in the short-term trend
- ADX: With the falling ADX slope at 25% the sellers are losing their grip over this asset, favoring buyers to regain trend control.
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