While Chainlink (LINK) has traded sideways this past week, a combination of whale activity and technical indicators suggest a potential price rebound. 📈 🐋
Currently at $14.20, LINK has been stagnating for days. Despite this, the coin’s value is still over 45% higher than its lowest point this year.
Recent analysis shows large investors have been steadily accumulating LINK over the last few months, as evidenced by whales holding between 100,000 and 1 million coins now possessing 173 million LINK, up from 143 million in November. This increase represents a sizable gain of 30 million coins, currently worth approximately $420 million.
Furthermore, whales with holdings ranging from 1 million to 10 million coins have also seen an increase, reaching 203 million from 183 million in February.
In addition to this whale activity, the supply of LINK tokens on exchanges has been steadily declining. The percentage of LINK held on exchanges dropped from 21% in March to 19%, its lowest level since March 13th. This decline often signifies a bullish signal as it indicates holders are moving their holdings away from exchange platforms and less likely to sell.
These trends may be driven by Chainlink’s partnerships with major institutions such as Swift and the Depository Trust & Clearing Corporation (DTCC). DTCC is exploring the use of Chainlink’s Cross-Chain Interoperability Protocol to modernize mutual fund data dissemination, which could represent a significant breakthrough for financial services. Similarly, Swift also wants to leverage Chainlink’s solutions to facilitate tokenized asset movement by large financial institutions across the globe.
Technical analysis further supports this bullish outlook. LINK’s price rebounded in recent weeks, rising from a low of $9.9720 in April to around $14. It currently trades above the 50-period moving average and exhibits a falling wedge pattern, a popular bullish reversal sign.
The coin has also formed an inverse head and shoulders pattern, suggesting further upward momentum as bulls aim for the next price target of $20, a potential 30% increase from the current level.