As 2024 approaches, altcoins are stepping ahead of the largest cryptocurrency Bitcoin (BTC). In this context, the popular decentralized oracle network Chainlink (LINK) continues to make strong moves. In the last 24 hours, LINK’s price has increased by 17% to $17.50, while its trading volume has nearly doubled to $1.1 billion. This price surge appears to be directly fueled by significant whale activity.
Whales Are Accumulating LINK
On-chain data indicates that during the past week, as the price consolidated above $14, whales have been accumulating LINK. Experienced cryptocurrency analyst Ali Martinez reported a significant development in Chainlink, revealing that whales have collected approximately 7 million LINK, worth around $105 million, in the last week. This significant purchasing activity suggests growing confidence among major players in the Chainlink ecosystem.
Moreover, the price chart currently indicates that LINK is showing a tendency to break out from a strong consolidation zone. If the altcoin’s price sustains above $17, a breakout in the flag and pennant formation could occur, potentially leading to a rally up to $25 by 2024. Currently, the nearest significant resistance level for LINK is at the $20 mark.
Various On-Chain Metrics Show Strength
A review of various on-chain metrics shows that the only negative metric for Chainlink is development activity, which signals a decrease over the month. However, market observers note that this decline may be due to the Christmas holiday. Nevertheless, the decentralized oracle network has faced a notable increase in social volume and trading volume during the same period.
Data from on-chain data provider Santiment reveals a significant increase in active wallet addresses from September to mid-November of this year, with a particularly noticeable spike at the beginning of December. This increase suggests a rise in network activity and adoption during the mentioned timeframe.
Despite this progress, the Network Value to Transactions (NVT) Ratio, a critical metric for evaluating the altcoin’s price, has been declining since September. This decrease in the NVT ratio, which shows the relationship between market value and on-chain transaction volume, indicates that LINK might be priced below its potential value.
