Analysts anticipate a potential breakout to $36, as Chainlink (LINK) is currently exhibiting robust upward momentum. In recent weeks, large investors, more commonly known as “whales,” have been aggressively accumulating LINK. Their increasing interest indicates that they are optimistic about the asset’s long-term potential. However, is this rally enduring, or is it merely another brief surge?
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Chainlink: Strong Whale Appetite
Data shows that large investors (whales) have been steadily buying more LINK when the price is between $17 and $21. In the past, when large buyers acted like this, it often led to big price raises. When many whales gather, it can lower the amount offered in the market, causing a supply shortage.
$Link #Link So Far So Good, Resistance Breakout, & Retest Has Already Confirmed, & Consolidating In This Region For A While, Now Expecting That Link Will Target 35-36$ In Next Couple Days, & Once This Resistance (35-36$ Got Cleared) We May See New Ath Within Couple Of Days… https://t.co/ImtBG8LINT pic.twitter.com/MWjibmqSGW
— World Of Charts (@WorldOfCharts1) January 31, 2025
Simultaneously, smaller investors have begun to take heed. The demand for LINK in the retail sector has increased, as the purchasing pressure has surpassed the selling activity. In the upcoming weeks, LINK may experience an increase in value as a result of the combination of institutional and retail accumulation.
Spot-Driven Rally Decreases Risk
Unlike other LINK price spikes, this jump is not driven by too great leverage. On-chain data indicate that the rise is spot-driven, meaning demand comes from direct purchases instead of speculative futures contracts. This raises the rally’s longevity by lowering the likelihood of a precipitous drop brought on by liquidations.
Still another important consideration is the lack of significant short holdings against LINK. When traders create high-leverage short positions, sudden price gains can cause short squeezes, which can drive prices even more upward. Given leverage is low, organic market demand seems to be the main reason behind LINK’s present movement instead of synthetic price pumps.
Breaking Critical Resistance Levels
The technical analysis indicates that LINK has effectively penetrated numerous resistance levels. Following a period of…
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