The cryptocurrency market showed a neutral stance during Thursday’s trading session as Bitcoin struggles to hold $100k. While the consolidation continues to stall recovery in most major altcoins, the Chainlink price shows resilience and hit a 3-year high of $29.45. The uptick fueled by whale and shark accumulation hints at the potential for another breakout in the near term.
The LINK price currently trades at $27.2 with an intraday gain of 13%. Consecutively, the asset’s market cap surged to $17 Billion, while the trading volume is at $3.08 Billion.
Key Highlights:
- A rounding bottom pattern drives the current recovery in Chainlink price.
- The coin price poised for a $28.7 resistance breakout could drive a 26% surge to hit $36.4.
- The LINK coin trading above the daily Exponential moving average (20, 50, 100, and 200) indicates a broader market uptrend.
Chainlink Price Explodes 172% Amid Massive Whale Buying Spree
Following the broader market, the Chainlink price rallied significantly from $10 to $27.8, accounting for a $172% surge. The price surge is attributed to significant whale and shark accumulation, with wallets holding over 100K LINK collectively adding 5.69 million LINK in the last two months.
According to Santiment data, smaller wallets holding less than 100K LINK have shed 5.67 million LINK during the same period, highlighting a redistribution from retail to large investors. This shift in holdings aligns with historical trends where large wallet accumulation amid retail selling often precedes market cap growth.
???????? Chainlink has surpassed $29 for the first time in 37 months, generating excitement from the community. This latest decoupling of LINK’s price has been supported by rising levels of whale & shark accumulation.
???????? Wallets with 100K+ LINK have added 5.69M LINK to their… pic.twitter.com/4c1uEZuEJj
— Santiment (@santimentfeed) December 12, 2024
LINK Eyes $52.8 as Rounding Bottom Pattern Signals Bullish Reversal
The Chainlink price analysis of the daily chart shows the formation of a classic reversal pattern called the rounding bottom. The chart setup shows three key phases, i.e., a significant downtrend, a long consolidation/accumulation, and high momentum, following a saucer shape.
Currently, the LINK price trades at $28.3 and challenges a 3-year-long resistance level of $28.7. A potential breakout will provide buyers with the next step to prolong the bullish trajectory.
If the pattern holds true, the coin buyers could chase potential targets of $36.3 and $44.4 before challenging the $52.8 neckline resistance. A flip above this resistance would indicate a major shift in market trends.
Despite the bullish outlook, a uni-directional rally is unlikely to sustain a prolonged prediction. Thus, the Chainlink price could use a 20-day EMA slope to offer dynamic support and recuperate the exhausted bullish momentum.