Chainlink Set for 419% Explosion? Major Breakout Zone Just Ahead

Chainlink (LINK) is trading near a key technical level, drawing attention from market watchers and traders.

A recent chart analysis shared by crypto analyst Michaël van de Poppe suggests that LINK/BTC is approaching a possible breakout zone.

In the meantime, the pair has been involved in a long trendline to the downside since August 2020, posting a fall of over 96%, from a peak measure around 0.0018 BTC down to lows below 0.00004647 BTC.

The chart shows multiple accumulation phases that failed to breakout over the past three years. Despite the downward pressure, Chainlink has seen price recoveries within these ranges.

Currently, LINK/BTC is consolidating just above its historical support zone. If the pair surpasses the 0.0004480 BTC resistance level, the next objectives are found at 0.0006721 and 0.0009750 BTC.

This would correspond to an increase on current levels from 409% to over 419%, according to the analysis.

This potential breakout zone is being watched closely, especially as LINK/BTC begins to form higher lows on the weekly timeframe.

This price action is seen by analysts as a behavioral trend shift which may mean the end of the long bearish cycle.

Whale Accumulation Strengthens Buying Activity

Data from Lookonchain confirmed that at least 15 newly created whale wallets have acquired a total of 2.52 million LINK tokens. The money, in the value of around $36.43 million, was purchased from Binance.

The accumulation phase occurred during the same period when LINK’s price rose nearly 13%, suggesting a link between whale interest and price movement.

An increased whale activity is usually accompanied with low volatily and adds to buying pressure. Such moves are usually interpreted by market participants as institutional or high net worth investor confidence in the near term potential of the asset.

Retail trade sentiment can be either mixed or positive, but large contracts usually serve as a ground for larger returns unless the trading interest becomes more omnipresent.

This trend is happening in the context of broader crypto market volatility. Bitcoin, for instance, declined 1.1% in the last 24 hours to a trading price of around $92,000. Meanwhile, LINK has dropped by 3.47% to $14.39 during the same time, after reaching a 24-hour high of $15.23.

Ecosystem Growth and U.S. Partnerships

Chainlink has been expanding its presence through new partnerships and integrations. One of the recent developments is Monad, an EVM compatible Layer 1 blockchain.

Upon its mainnet launch, Monad developers will be able to access Chainlink’s suite of Web3 services. This includes Data Feeds, Data Streams and the Cross Chain Interoperability Protocol (CCIP).

The services want to help with decentralized application developers by providing real market data and to achieve cross-chain capability.

In addition, the access to reliable pricing and exchange rate information can be helpful in designing lending platforms, decentralized exchanges, and other tools of financial exploitation. This expansion aligns with previous remarks from Michaël van de Poppe, who said,

“Fundamentally, $LINK has been working extensively to get partnerships in the U.S.A, and I think that their ecosystem has massively expanded.”

Pointing to his confidence in the token’s future price performance, he also mentioned,

“This run will likely be higher than the previous one.”

Price Action and Market Overview

Despite the bullish chart setup and whale activity, LINK has experienced short-term volatility.

As of press time, LINK trades at $15.00, with a 24-hour trading volume of $568 million.

However, the token saw a price increase of 15.35% over the past week, but has declined slightly within its intraday sessions.

Early signals of strength appear on technical indicators. The weekly RSI is neutral and climbing but slowly and this suggests growing momentum.

Traders are watching closely to see if LINK can sustain this momentum and break through the key resistance level.

The post Chainlink Set for 419% Explosion? Major Breakout Zone Just Ahead appeared first on The Coin Republic.