- Chainlink (LINK) is predicted to hit $50. It looks set to form a bullish flag after recently breaking out of a symmetrical triangle pattern.
- An analyst believes that LINK could face a crucial resistance at $22 as 100,220 LINK addresses purchased 57.2 million LINK at the range of $18.4 to $26.3.
Chainlink (LINK) has made an impressive surge of 6% on its 24-hour chart and 76% on its monthly chart to trade at $19.8. Fascinatingly, this trend could continue as we spot multiple bullish indicators on its on-chain data and technical price chart.
The Symmetrical Triangle Pattern
According to analysts, a bullish symmetrical triangle pattern appeared on the chart of LINK in 2021. However, the asset had been consolidating inside with unsuccessful attempts to break it, but it ended up taking a nosedive. Meanwhile, this recent breakout could lead to the formation of a bullish flag pattern and set the asset up for a surge to $50.
Pending this expected move, analysts believe that the asset could temporarily pull back as the exchange balance surges significantly. Adding to this, LINK’s NVT ratio also shows that the current price is overvalued. Technically, these levels of potential corrections precede a flag formation.
Currently, the immediate support level for LINK is $18.66. However, the inability of buyers to hold the price above this position could cause the asset to decline to $14.9.
Previous Whales Action
Looking into the current price action, we discovered that the ongoing price trend could be a product of previous whale accumulations. In October, CNF reported that whale activities have increased from 489 on October 1 to 502 on October 8.
On September 27, a whale accumulated 8.5 million LINK ($108.8 million at that time). Fascinatingly, wallets holding between $100,000 and $1 million increased their holdings from 685.5 million LINK to 694 million between mid-August and late September. As we explained, this situation reduced the exchange balance by a significant margin, reducing selling pressure and increasing the price proposition.
In that article, we highlighted that LINK’s Exchange Netflow was negative, with 667,290 LINK moving out of the various centralized exchanges.
How Strong is the Current Resistance Level?
According to IntoTheBlock’s data, about 100,220 LINK addresses purchased 57.2 million LINK within the price range of $18.4 to $26.3. Due to investors’ psychology, this range is a crucial resistance and support level.
Explaining this situation, analysts disclosed that this range could easily trigger a panic move since a retest could flip the profit-loss status of investors. Mathematically, the average value of $22 holds the cost basis of several investors, making it a crucial price level.
According to analyst Ali Martinez, a possible breach of this mark could position LINK at an easy entry into a new all-time-high price. However, failure to break into this range could cause LINK to find support within the ranges of $11 to $15.
The next critical hurdle for #Chainlink $LINK is $22. Clearing it could set the stage for a potential all-time high—just a question of timing! pic.twitter.com/9cS8XJsF1q— Ali (@ali_charts) November 25, 2024
