3 reasons Chainlink prices could rise another 20% by the new year
Chainlink (LINK) price has rebounded more than 240% from its annual low of around $4.70 in June 2023. As discussed below, numerous on-chain and technical indicators suggest it could continue to rise further in the coming days and weeks.
LINK price is close to breaking the ascending triangle.
The price of LINK is consolidating inside what appears to be an ascending triangle pattern from November 2023.
An ascending triangle is a bullish continuation pattern when formed during an uptrend. It is resolved when the price crosses the upper trend line, rising by the maximum distance between the upper and lower trend lines.
LINK is predicting a similar breakout scenario in December 2023 and currently appears to be treading on the upper trendline of the triangle near $16. Assume a decisive rise above that resistance level. The triangle breakout target would then be above $19.50, a 20% increase from the current price level.
Therefore, a clear rise above that resistance level would set the triangle breakout target above $19.50, a 20% increase from the current price level.
Chainlink supply on exchanges plummets
More clues about a potential 20% rally for Chainlink in December 2023 come from data tracking LINK supply across cryptocurrency exchanges (red wave in the chart below).
As of December 3, cryptocurrency exchanges held approximately 150.39 million LINK tokens, the lowest since February 2020. This is a 19% decrease from the peak of 185.71 million LINK in August 2023, while the token value increased by 150%.
The depletion of supply across exchanges suggests that traders prefer to hold LINK tokens rather than sell them for other assets. This increases LINK’s potential to continue its bull run into 2023 if demand does not decline.
LINK The whales are gathering
Data tracked by Santiment shows that demand for LINK tokens continues from the richest addresses.
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Notably, Chainlink’s top 200 whale addresses have accumulated $50 million worth of LINK tokens since early November.
This coincides with a 50% increase in LINK’s market value, suggesting whales have accumulated the token to higher highs. Simply put, Chainlink’s top holders believe its value will rise further in the new year.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
