As we steer towards the year’s end, Chainlink (LINK), the blockchain oracle network, is not just tiptoeing but rather striding confidently into a bullish trend. From its low point of about $4.70 in June 2023, Chainlink’s price has skyrocketed by an impressive 240%.
But hold onto your hats, folks, because this digital currency might just be getting started. With a concoction of on-chain metrics and technical indicators brewing a potentially lucrative December, Chainlink’s rally could very well be the talk of the town.
The Technical Tango: Ascending Chainlink’s Triangle Breakout
Let’s get technical, shall we? Since November 2023, Chainlink’s price has been dancing within an ascending triangle pattern. For the uninitiated, this is a bullish sign, especially when it occurs during an uptrend. The pattern usually culminates in a price breakout, propelling the asset upwards, often as high as the pattern’s height.
As December 2023 unfolds, LINK, currently flirting with the triangle’s upper trendline near $16, seems poised for a breakout. Should it decisively vault over this resistance level, we could be looking at a target north of $19.50.
That’s a 20% leap from its current position, a jump that would surely have investors and enthusiasts alike breaking out in a synchronized happy dance.
Supply, Demand, and Whale Moves
Diving deeper into Chainlink’s ecosystem, there’s more than just technical patterns at play. The token supply on crypto exchanges is dwindling, and that’s no small matter.
As of early December, exchanges held about 150.39 million LINK tokens – the lowest since the heady days of February 2020. This represents a 19% drop from the 2023 peak in August, occurring in parallel with a 150% price surge.
What does this mean? Well, it’s simple economics. A decreasing supply on exchanges suggests that traders are holding onto their LINK tokens rather than selling them off. In a market where demand remains constant or increases, this scarcity can only mean one thing – upward pressure on prices.
But wait, there’s more! Chainlink isn’t just attracting the average Joe trader; it’s also a hit with the big fish in the crypto sea – the whales.
According to Santiment data, Chainlink’s top 200 whale addresses have added a whopping $50 million worth of LINK to their already hefty portfolios since November’s start.
This isn’t just a casual fling; it’s a full-blown commitment. These whales aren’t just accumulating; they’re doing so as the token’s price scales new heights, a clear indicator of their bullish outlook on Chainlink’s future value.
In the realm of digital assets, where volatility is the only constant, Chainlink’s current trajectory paints a compelling picture. With technical indicators, supply trends, and whale behavior all singing the same bullish tune, the stage is set for a potential year-end rally.
As we barrel towards the New Year, Chainlink’s prospects look brighter than ever. It’s not just a matter of if, but rather how high it can soar. So, strap in and watch closely, because if these indicators are anything to go by, the altcoin might just be the star of this year’s crypto finale.
