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Chainlink (LINK) has rallied impressively over the past few days, surpassing the critical $13 resistance level and posting a notable gain of 35%. This latest breakout has sparked optimism among analysts and investors, as LINK has faced strong resistance around the $13 level since late July, and is struggling to maintain any upward momentum. However, the market sentiment now appears to be changing, with many anticipating further upside for Chainlink.
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Supporting this bullish outlook, key data from on-chain analytics firm Santiment reveals that LINK whale activity has reached a 3-month high, with major holders accumulating LINK in large quantities. This increased whale activity is often an indicator of confidence among major investors, suggesting that Chainlink’s recent rally may be just the beginning of a more sustained rally.
As LINK breaks free of months-long resistance and gains renewed momentum, the next few days will be crucial in determining whether this rally has the strength to reach higher price levels or whether it will encounter new resistance. However, for now, Chainlink’s impressive performance has analysts speculating about its ability to maintain upward momentum in the coming weeks.
Chainlink whales waking up
Chainlink is showing signs of renewed strength, with the price rising above key resistance levels that have held the coin back for several months. For the first time since July, LINK token crossed the $13.65 level, marking a significant shift in price action. This breakout came at a time when important data points indicate a bullish outlook for the asset.
According to Santiment, Chainlink has decoupled from the broader altcoin marketwhich indicates unique price performance amid a recovering market. One of the most immediate indicators is the significant rise in whale activity, which has reached its highest level in 3 months. Stakeholders who own between 100K and 10M LINK have raised $369.8M worth of the token in just 7 weeks, representing an 8.2% increase in their holdings.
This increase in whale activity often indicates confidence in the token’s future price potential, as major investors position themselves for the next phase of growth.
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The accumulation of Chainlink whales, combined with key price-crushing resistance levels, indicates that Link is poised for continued growth in the coming weeks. As the entire market begins to recover and rise again, Chainlink’s breakaway from the group may indicate that it is positioning itself as a leader in the altcoin space. Investors are watching closely, as the recent price rise and whale behavior suggest that LINK may see continued upward momentum.
Link to test the new offer
Chainlink is currently trading at $13.5 after successfully breaching the 200-day moving average (MA) at $12.9, a key level that indicates a strong and bullish outlook in the long term. This breakout has given bulls control, reinforcing positive sentiment around LINK’s price action. For the uptrend to continue, it is important for LINK to hold the 200-day moving average as support, as this level often represents a turning point between the bearish and bullish phases.
While LINK is showing strength above $13, a healthy rebound to around $12.5 could provide the fuel needed for further upside if this level holds as support. A pullback of this type would allow the bulls to consolidate gains and lay a stronger foundation for the next move.
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Traders are eyeing the $14.5 area as the next important supply area, as LINK may face resistance as it approaches this level. If LINK can rise above $14.5, it will indicate strong demand and potentially open the door to higher levels in the coming weeks, as whale activity and overall market sentiment support further gains.
Featured image by Dall-E, chart from TradingView