Chainlink (LINK) , the oracle network powering the decentralized world, has been stirring up excitement after a recent surge past a critical resistance level. Analysts at the moment are predicting a possible price explosion, with some even charting a course for the moon. Nevertheless, lurking beneath the bullish sentiment are shadowy movements by large investors, injecting a dose of uncertainty into the combination.
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Chainlink Escapes The Triangle, Eyes Set On The Sky
After a period of decline, LINK has shown signs of life, decisively breaking above the $13 resistance level. This bullish move has sparked a wave of optimism, with many analysts predicting a sustained uptrend.
Morecryptoonl, a renowned crypto analyst, identified a big Elliott Wave pattern in LINK’s price motion. In accordance with this evaluation, LINK is currently undergoing a consolidation phase inside a triangle pattern. While this pattern can indicate a period of sideways movement, a breakout above a key resistance level of $14.85 could signal a big shift in momentum.
$LINK: Wave (B) in white could unfold as triangle pattern but the value, on this case, has to remain below the yellow line at $14.85. A break above this line will indicate that a bigger corrective rally in yellow wave (B) is unfolding.#chainlink #LINK #altcoins pic.twitter.com/eGngNm0eEH
— More Crypto Online (@Morecryptoonl) June 25, 2024
Bullish forces are further emboldened by the present Relative Strength Index (RSI) sitting at a neutral 43. This implies that LINK is neither overbought nor oversold, leaving loads of room for potential growth.
Technical indicators aside, World of Charts is predicting a “sustained bullish trend” if LINK can definitively break free from its current consolidation pattern. Their optimistic forecast paints an image of LINK reaching lofty heights between $22 and $25.
LINK market cap currently at $8.6 billion. Chart: TradingView.com
Whales Stir The Waters: Selling Spree Or Strategic Shuffle?
A recent wrinkle within the bullish narrative has been the movement of huge amounts of LINK by whales, entities holding significant crypto holdings. Over 18 million LINK tokens were recently transferred to exchanges, raising concerns about potential selling pressure that might dampen the present rally.
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Nevertheless, some analysts caution against jumping to conclusions. They argue that such movements usually are not unusual and may very well be part of a bigger investment strategy, not necessarily a prelude to a selloff.
A Bumpy Ride Ahead?
While the long run looks vibrant for LINK, investors ought to be prepared for a rollercoaster ride. The cryptocurrency market is notoriously volatile, and LINK isn’t any exception. While the present technical evaluation paints a bullish picture, unexpected events or market fluctuations could quickly derail the positive momentum.
Featured image from Pexels, chart from TradingView