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.
Also Read: Hidden Gems You Don’t Want To Miss This Week
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been a pronounced negative net flow of LINK tokens from cryptocurrency exchanges, indicating that more tokens are being withdrawn than deposited.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.
Also Read: The Future of Bitcoin: How Layer-2 Solutions Boost Utility Through Smart Contracts
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.
- What’s Behind Ethereum’s Drop: Macro, TVL, DeFi & Liquidity Zones
- Bitcoin ETFs Record Biggest Daily Outflow Since August as OG Whales Cash Out
- CZ Trump Pardon: Binance Founder Denies Any Trump Family Ties
- Odds for December Rate Cut Soar to 71% After Michigan Consumer Sentiment Hits 2nd-Lowest in History
- Breaking: James Chanos Exits MSTR Short After Premium Drop
- After a 17% Jump, Is Litecoin Price Rebound Sustainable Amid Dominant Sell Activity?
- Cardano Price Soars 10% Amid Retail Accumulation: Will Bulls Target $1?
- Bitcoin Price: How Low BTC Could Fall by the End of 2025?
- Post-Giveaway Supply Shock: Impact on FUNToken’s Liquidity and Market Depth
- Aster Price Poised to Hit $2 as Coinbase Adds ASTER to Listing Roadmap
- Filecoin Price Rockets 51% as Grayscale’s FIL Holdings Hit Record High — What’s Next for FIL?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
