Chainlink Breaks 6-Year Long Downtrend...150% Further Rise Predicted

▲ Chainlink (LINK)/ChatGPT Generated Image

Chainlink (LINK) recently rose 15.27% over the past week, reaching its highest price in approximately three months. Analysis suggests that the short-term breakout was fueled by a simultaneous decrease in exchange holdings, accumulation by large wallets, and increased social media interest.

BeInCrypto reported on May 9th that Chainlink reached an intraday high of $10.6, marking its highest level in over three months of price action. According to the article, this rise coincided with a decrease in exchange holdings and a surge in social media mentions.

According to Santiment data, approximately 13.5 million LINK tokens have left exchanges over the past five weeks. This represents about 10.5% of the total exchange holdings. BeInCrypto stated that the decrease in exchange supply indicates an accumulation trend, while a surge in social volume to a three-month high simultaneously drew traders' attention back to Chainlink.

The movements of large wallets also supported the accumulation trend. Wallets holding between 1 million and 10 million LINK increased their holdings from 265.02 million LINK to 288.04 million LINK over the past 30 days. This increase of 23 million LINK represents an 8.7% rise.

Wallets holding between 100,000 and 1 million LINK also expanded their holdings from 163.08 million LINK to 172.91 million LINK during the same period. The increase in this segment was 9.83 million LINK. Combining these two groups of holders, approximately 32.85 million LINK were absorbed over the past month, and the total holdings increased by 7.7%.

Further upward prospects have also been raised in the market. Trader Quinten Francois stated that Chainlink has broken out of a downtrend within a large pennant structure that had lasted for six years. He mentioned the possibility of reaching $23 by October.

Another trader, Clifton, analyzed that Chainlink's daily chart is forming a falling broadening wedge pattern. He suggested that a strong upward rally could be triggered if the upper trendline is broken with strong momentum candles and increased trading volume. Based on measurement targets, an additional upward potential of 100% to 150% was suggested from the breakout zone.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*