Chainlink (LINK) Surges Amid Whale Activity and Bullish Technicals

Chainlink (LINK) is experiencing a notable upswing, currently trading around $16.45. This represents a gain of over 2% on Thursday, mirroring the broader cryptocurrency market’s recovery, with Bitcoin reaching new all-time highs. On-chain data indicates growing support from large holders, reinforcing a positive outlook. Technical analysis suggests a potential inverted head and shoulders pattern, hinting at further upward momentum for LINK.

Chainlink Eyes $25 Target with Trend Reversal Pattern

LINK’s current price builds on Wednesday’s 2.48% increase. Having surpassed the 200-day Exponential Moving Average (EMA) at $16.01, the cryptocurrency is now targeting the $18 supply zone.

The $18 area has historically kept LINK within a volatile price range, with a lower boundary at $10.93. However, increasing underlying optimism is contributing to an inverted head and shoulders pattern on the daily chart, signaling a possible trend reversal.

This bullish pattern is evident on the technical chart, with the ongoing price recovery aiming to form the right shoulder. A potential 40% breakout target is calculated by extrapolating the pattern’s depth above the breakout point, setting a target of $25.34. This level aligns with the 78.6% Fibonacci retracement level, measured from the 63% decline from $29.26 to $10.93 between December 15th and April 8th.

The Relative Strength Index (RSI), currently at 58, is moving away from the midline, indicating increased buying momentum. The rising RSI suggests room for further growth, as it remains distant from overbought territory.

However, a reversal closing below the 50-day EMA, near the right shoulder’s lower boundary around $15.00, would invalidate the bullish pattern. This could extend the decline to $13.20, a previous higher low in the ongoing uptrend.

Whale Activity Bolsters LINK’s Breakout Prospects

Optimistic whales have been on a buying spree as Chainlink has been forming a reversal pattern since February. Data reveals that the balance of investors holding between 100,000 and 10 million LINK tokens has increased from 350 million to 375 million since February. This increase in holdings among large investors demonstrates growing confidence in Chainlink.

Furthermore, there has been a surge in the number of large transactions valued at over $100,000. Such significant volume typically correlates with institutional or whale movements, as retail investors generally lack this level of capital.

Since May 17th, the number of large transactions has risen from 97 to 228, a 135% increase. This growing whale activity and increasing holdings support the bullish outlook for Chainlink.

• Chainlink is up nearly 2% on Thursday, driven by increased capital flow and risk appetite.
• Whale activity in Chainlink has surged, with 25 million LINK tokens added to their holdings since February.
• Technical outlook suggests a potential bullish breakout pattern as sentiment improves.

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