Key Insights:
- Chainlink price shows strong potential for a breakout with a bullish pennant formation and continued demand zone support.
- Whale accumulation during the recent dip signals confidence in LINK’s long-term growth, with over 800,000 LINK added.
- Negative netflows highlight reduced supply pressure, suggesting lower selling activity and reinforcing a positive outlook for LINK’s price.
Chainlink’s price is holding steady at a critical point, currently trading at $21.81. This comes after a period of consolidation within a key demand zone, an area where the price has previously found support. The market structure suggests bullish potential, with a double bottom pattern forming in early September. This structure points to a potential rebound if the support levels hold.
Following the initial test of support near $21 on September 2, Chainlink bounced back sharply, rallying by 17% to reach $25.60. However, the price experienced a slight pullback before stabilizing. Currently, a bullish pennant pattern is emerging on the charts, reinforcing the case for further upside. This continuation pattern typically signals a potential breakout if the price breaks through key resistance levels.
A break above $25.20 would likely unlock a 28% rally, with the next target set at $27.86. This would further confirm the ongoing bullish trend. Defending the demand zone remains critical for Chainlink, as any failure to hold this level could lead to renewed downside pressure. However, a confirmed move beyond $27.86 would validate the pennant projection, opening the door for further gains toward $30.
Whale Accumulation Signals Confidence in LINK
In addition to technical indicators, whale activity is providing further confidence in Chainlink’s potential. Recent data reveals that whales added over 800,000 LINK during the dip, reflecting strong belief in the asset’s long-term value. This strategic accumulation often precedes price recovery, with larger holders positioning themselves for future gains.
Furthermore, on September 24, netflow data from CoinGlass highlighted outflows of $14.45M, showing that LINK is leaving exchanges. This suggests that investors are holding onto their tokens, reducing available supply for immediate selling. The decrease in coin inflows further signals that selling pressure is limited, adding to the bullish sentiment surrounding the asset.
Technical Setup and Whale Support Strengthen Optimism
Chainlink’s technical setup and whale participation both point to a potential breakout. The price has remained resilient within its demand zone, and the increasing accumulation from large holders suggests that LINK could be poised for a significant rally. With reduced supply pressure from the market and continued support at critical levels, the stage is set for Chainlink to make its move higher.
