- Chainlink’s price action is closely tied to Bitcoin’s movements
- Technical analysis hinted at a potential rally and breakout above LINK’s descending channel
Chainlink [LINK] has seen renewed interest from investors lately, following positive and appealing developments associated with its network. In fact, despite price fluctuations, the altcoin’s trading volume surged by 24.59% in the last 24 hours.
In light of on-chain insights revealing accumulation by large investors and LINK’s current technical setup, is a rally to $30 on the way?
What does the price action say?
At the time of writing, LINK was trading at $17.08, following a slight price dip amid rising trading volume. Looking at the 1-day chart, the price seemed to be making lower highs and lows, while consolidating in a descending channel pattern since Q4 2024.
According to Solberg Invest on X (formerly Twitter), LINK may be eyeing a breakout above the $20-key resistance zone following a retest of its support and a sustained price uptrend. If the bulls hold the momentum, LINK’s rally to $30 could be starting. A failed breakout could lead to a mid-term retest of the $12 key support zone waiting for the next attempt.
Insights from on-chain metrics
Altcoin’s on-chain data hinted at its recent bullish momentum and surge in trading volume. For instance – According to IntoTheBlock, LINK saw significant exchange withdrawals ($4M) over the past week.
Also, a majority (67%) of LINK’s holders are large-scale investors too.
Source: IntoTheBlock
With 54% of them in profit, the metrics alluded to whale accumulation, fall in selling pressure, and long-term investor conviction visible on the price charts. Additionally, the past week has seen LINK’s IO-weighted funding rate turn positive – Indicative of a trend reversal.
Source: Coinglass
Market and fundamental developments
Chainlink’s utility in decentralized finance(DeFi) strengthens its bullishness beyond price action. For instance, with its application in real-world asset (RWA) tokenization, LINK’s long-term utility and gains could be established.
According to CMC TLDR, Chainlink is now partnering with U.S authorities to develop compliant smart contracts as they incorporate blockchain technology in finance.
Chainlink’s price consolidation in a descending channel and recent trend reversal amid such market developments signal a potential bullish rally in the long term. With a high Bitcoin correlation (0.92), BTC’s movements could influence its price volatility in the mid-term.
Traders should watch for LINK’s movement inside this pattern and whale activity for further insights.
