The rising trend in the cryptocurrency market led by Bitcoin continues to gain momentum. According to this, the price of Chainlink has experienced an increase of over 240% since reaching its lowest level of about $4.70 in June 2023. However, can Chainlink continue its rise in the coming days and weeks according to many notable data and technical analysis? Let’s take a look together.
Will LINK Rise Continue?
The price of LINK has been moving within a rising triangle formation structure since November 2023. When formed with an uptrend, the rising triangle formation is known to continue within the upward scenario. When the price exceeds the upper trend line and increases by the difference between the upper and lower trend lines, the formation target is completed.
Accordingly, LINK may experience a similar breakthrough in December 2023 and is currently trading around the upper trend line at $16. If the price rises steadily above this resistance level, then the target of the triangle breakout will aim for above $19.50, a 20% increase from the current price levels.
Notable Developments in On-Chain Data
In addition to technical analysis regarding the potential 20% rise in Chainlink in December 2023, it also comes from the data tracking the LINK supply on crypto exchanges. As of December 3rd, there were approximately 150.39 million LINK tokens on crypto exchanges, the lowest level since February 2020. This data indicates a 19% decrease compared to the supply peak in 2023, which occurred with 185.71 million LINK supply in August, and this supply contraction coincided with a 150% increase in token value.
The decrease in token supply on exchanges indicates that investors prefer to hold their LINK assets rather than sell them for other assets. Therefore, if demand does not decrease, the potential for LINK to continue its 2023 bull run increases.
According to data tracked by the blockchain data analysis platform Santiment, strong demand for LINK continues among whales. This is especially evident with the largest 200 whale addresses of Chainlink accumulating $50 million worth of LINK tokens since the beginning of November. This development coincides with a 50% increase in LINK’s market valuation and shows that whales are accumulating even at the highest levels.