Chainlink (LINK) , the oracle network that powers the decentralized world, has been sparking excitement after a recent surge past a critical resistance level. Analysts are now predicting a possible price explosion, some even charting the path of the month. However, lurking beneath the bullish sentiment is a shadowy movement by major investors, adding a dose of uncertainty to the mix.
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Chainlink Escapes the Triangle, Eyes on the Sky
After a period of decline, LINK showed signs of health, breaking above the $13 resistance level. This bullish move has caused a wave of optimism, with many analysts predicting a further rise.
Morecryptoonl, a well-known crypto analyst, has identified an important Elliott Wave pattern in the price action of LINK. According to this analysis, LINK is currently under a consolidation phase within a triangle pattern. While this pattern may indicate a period of sideways movement, a break above the key resistance level of $14.85 may signal a major change in momentum.
$LINK: The white wave (B) can open as a triangle pattern but the price, in this case, should stay below the yellow line at $14.85. A break above this line will indicate that a major corrective rally in the yellow wave (B) is unfolding.#chainlink #CONNECT #altcoins pic.twitter.com/eGngNm0eEH
— More Crypto Online (@Morecryptoonl) June 25, 2024
Bullish strength is further confirmed by the current Relative Strength Index (RSI) sitting at a neutral 43. This suggests that LINK is neither overbought nor oversold, leaving plenty of room for potential growth.
Technical indicators aside, World of Charts predicts a “continuing bullish trend” if LINK can finally break out of its current consolidation pattern. Their optimistic forecast paints a picture of LINK reaching a high of between $22 and $25.
Whales Shake the Water: Trading Spree or Strategic Shoffle?
The latest wrinkle in the bullish story has been the movement of a large amount of LINK by whales, organizations that hold an important role in crypto. More than 18 million LINK tokens were recently transferred to the exchange, raising concerns about possible selling pressure that could dampen the current rally.
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However, some analysts caution against jumping to conclusions. They argue that such moves are rare and could be part of a larger investment strategy, not necessarily a precursor to a selloff.
Bumpy Ride Ahead?
While the future looks bright for LINK, investors should be prepared for a rollercoaster ride. The cryptocurrency market is notoriously volatile, and LINK is no exception. While current technical analysis paints a positive picture, unexpected events or market fluctuations can quickly disrupt positive momentum.
Featured image from Pexels, chart from TradingView
