Chainlink (LINK) has experienced a remarkable rebound of over 240% from its yearly low in June 2023. This surge in price may not be the end of its upward trajectory, as indicated by a variety of on-chain and technical indicators. Since November 2023, LINK’s price has been consolidating within an ascending triangle pattern, which is generally seen as a bullish continuation pattern when formed during an uptrend. The resolution of this pattern occurs when the price breaks above the upper trendline, leading to a potential rise by the maximum distance between the upper and lower trendlines.
In December 2023, LINK appears to be eyeing a similar breakout scenario, with the current price treading around the triangle’s upper trendline near $16. Should it rise decisively above this resistance level, its triangle breakout target would exceed $19.50, representing a 20% increase from the current price levels. The existence of this pattern and the potential breakout suggest further upward momentum for Chainlink in the coming weeks.
Another factor contributing to the potential 20% rally in December comes from monitoring the supply of LINK tokens across crypto exchanges. As of December 3rd, the total number of LINK tokens held by exchanges was approximately 150.39 million, the lowest figure since February 2020. This indicates a 19% drop from the peak supply of 185.71 million LINK tokens in August 2023, which occurred concurrently with a 150% rise in the token’s value. The diminishing supply across exchanges suggests a preference for holding LINK tokens, rather than selling them for other assets. As long as this demand for LINK persists, it strengthens the possibility of Chainlink maintaining its bullish run.
Further evidence supporting the positive outlook for Chainlink lies in the behavior of its richest addresses. Santiment’s data tracking reveals that Chainlink’s top 200 whale addresses have accumulated $50 million worth of LINK tokens since the beginning of November. This accumulation coincides with a 50% rally in LINK’s market valuation, indicating that the whales made their purchases during the token’s higher price levels. These large holders of Chainlink clearly believe in the token’s potential for further appreciation by New Year’s, adding to the overall optimism surrounding LINK’s future.
Chainlink has experienced a significant rebound and shows potential for further gains. The ascending triangle pattern, if resolved with a breakout above the upper trendline, points to a 20% rise in price. Additionally, the diminishing supply of LINK tokens on crypto exchanges and the accumulation by whales suggest strong demand and positive sentiment towards Chainlink. As we approach the end of the year, all signs indicate a promising outlook for LINK, making it an asset to watch in the coming days and weeks for potential investors and traders alike.
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