3 reasons why the value of chainlink can increase by 20% in the new year
Chainlink (LINK) price has recovered more than 240% from its annual low of $4.70 in June 2023. As discussed below, it could still rise further in the coming days and weeks, triggered by the chain and technical indicators.
The price of LINK is presented with an upward triangle collapse
Since November 2023, LINK price has been consolidating in what appears to be an ascending triangle pattern.
Ascending triangles are bullish continuation patterns when they form during an uptrend. They resolve when their price breaks above the upper trend line and increases as much as the maximum distance between the upper and lower trend lines.
LINK saw a similar bullish scenario in December 2023, now at the top of the triangle trending around $16. Let's say that it has been decidedly raised from the mentioned level of protection. Then, the triangle breakout target will be above $19.50, which is a 20% increase from the current price level.
Therefore, if there is a significant rise above the mentioned resistance level, the triangle breakout target will be above $19.50, which is a 20% increase from the current price level.
Chainlink's supply on exchanges has failed
More clues about Chainlink's 20% rally in December 2023 come from tracking LINK from data on crypto exchanges (the red wave on the chart below).
As of December 3, crypto exchanges held approximately 150.39 million LINK tokens, the lowest since February 2020. This represents a 19% decrease from the August 1923 high of 185.71 million LINK.
The dwindling supply of LINK tokens on exchanges suggests that they prefer traders rather than selling them for other assets. Therefore, LINK has the potential to continue its bull run in 2023 if demand does not wane.
LINK Whales are piling up.
Data tracked by Sentiment shows that strong demand for the LINK token continues among its wealthiest addresses.
Also read: Is the altcoin season here? How to trade small-cap coins in high volatility
Specifically, ChainLink's top 200 whale addresses have accumulated $50 million worth of LINK tokens since early November.
That coincides with a 50% rally in LINK's market price, suggesting whales have stockpiled the signal at higher highs. Simply put, Chainlink's top owners believe its value will increase further in the new year.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
