Chainlink Price Rally Has Legs, Analysts Say – Can LINK Hit $15 by Year’s End
Key Takeaways
- LINK started a bull cycle on June 10.
- A breakout momentum above $9.20 brought the price to $13.
- On-chain data suggest retailers are buying now.
In a remarkable show of resilience, Chainlink‘s native token, LINK, has embarked on a meteoric ascent, surging an impressive 84% since its October 20 low of $7.30. The digital asset’s price reached just above $13 on November 6, marking its highest valuation since spring 2021.
With LINK’s price already up by 160% from its position on June 20, the pressing question for investors is whether this bullish trend will propel it beyond the $15 mark and set new records before year-end.
The foundation of this rally seems to go beyond mere speculation. On-chain metrics provide strong evidence of a robust and lasting uptrend. As analysts delve into blockchain data, there is a growing body of evidence suggesting that LINK’s price surge is not a short-lived phenomenon but a sustained advance, possibly extending past the $15 threshold.
On-chain Analysis
On the blockchain front, Santiment data reveals that retail investors are actively buying. The group with a minimum of 1,000 LINK tokens in their wallets has reached a new all-time high of 27,152 wallets.
Cross-referencing this data with IntoTheBlock’s insights, we can confirm that this particular group has exhibited the most significant growth in the past 30 days. There has been a remarkable 2.29% increase in the number of wallets holding 1,000 LINK tokens. Additionally, the group of wallets holding between 1,001 and 1,000,000 LINK has seen a nearly 2% rise in numbers during the same period.
On the flip side, LINK whales have seen a reduction in their share of the supply, with those holding between 100,000 to 1 million LINK tokens witnessing a 2% decrease. This shift could suggest a transfer of ownership from institutional investors to retail participants.
While large holders likely acquired their holdings over a 500-day period, it appears that retail investors are now actively pursuing LINK at its current price levels.
However, the market is showing a clear demand for LINK at the moment, and it doesn’t seem to be oversaturated. Data from In/Out of Money indicates that the overall profitability percentage remains relatively small, with approximately 53.78% of addresses currently holding LINK tokens in a profitable position.
LINK Price Analysis
Chainlink’s native token, LINK, has taken investors on a wild ride since hitting its all-time high of $52 in May 2021. After a significant drop, LINK found support just below $5 on June 10, marking a critical turning point. From there, it embarked on a recovery, reaching $8.40 by July 20, signaling a potential resurgence.
The path to resurgence, however, faced some bumps along the way, including a subsequent dip. Nevertheless, LINK maintained a higher low at $5.80 on August 31, laying the foundation for a more robust uptrend. This bullish momentum shattered a key resistance at $9.20 on October 23. This led to a consolidation phase that culminated in a surge above $13 recently.
Analysts are closely examining wave patterns, suggesting that LINK may be in the third wave of a five-wave upward impulse. If the token avoids a sharp decline and instead opts for a gradual descent, holding above the $10 level, there’s a promise for a sustained rally, possibly reaching a fifth wave high.
The pivotal $15 price target awaits on the horizon, contingent on the depth and trajectory of the anticipated fourth wave. A shallow retracement could propel LINK to new heights. Instead, a deeper pullback might limit the ascent, potentially causing the price to stall around the $13 mark. The crypto community eagerly awaits LINK’s journey, anticipating both triumph and potential challenges ahead.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
