Chainlink (LINK), which has formed a strong support zone between $6.63 and $6.88, has managed to attract approximately 29,000 wallet addresses that purchased around 295 million LINK during the formation process of this support zone. The support level, strengthened by the aggressive accumulation of large LINK whales, indicates a highly positive outlook for the future price trend of the altcoin.
Strong Support for Chainlink’s Price
On-chain data reveals a strong bullish sentiment as long as Chainlink holds above the support level between $6.63 and $6.88. This sentiment is further strengthened by the absence of significant resistance levels in the short term. Current data shows that the altcoin traded at $7.43, a decrease of 1.43% in the last 24 hours.
Data suggests that large whales have been busy increasing their LINK holdings. In the past two weeks alone, whales have purchased approximately 13 million LINK worth a total of $91 million. While this accumulation pattern is promising for Chainlink investors, those looking to exit the asset may need to exercise patience. Other on-chain data also indicates a decrease in network activity over the past three weeks, including a decrease in the number of large transactions on the network.
Experts point out that a sudden surge in large transactions could potentially be a sign of an upcoming price breakout, urging caution. While the cryptocurrency market continues to consolidate, Chainlink remains within an upward trend. Current on-chain data suggests a favorable environment for both investors and traders, with no strong resistance levels ahead.
CCIP Technology Could Trigger a Rise in LINK’s Price
The strong outlook for LINK is primarily driven by adoption. Most recently, Lendvest announced that it will utilize Chainlink’s cross-chain interoperability protocol (CCIP) to develop a decentralized credit scoring system. Lendvest, a data marketplace for decentralized borrowing and lending information, will collaborate with Chainlink to launch the credit scoring system jointly, citing Chainlink’s proven track record in providing secure oracle solutions to maintain the highest security and reliability standards. This interest in the decentralized oracle network could play a significant role in attracting whales towards LINK in the long run.
