The upward trend in the cryptocurrency market led by Bitcoin continues to gain momentum. The price of Chainlink, which reached its lowest level at around $4.70 in June 2023, has increased by more than 240%. But can Chainlink sustain its bullish momentum in the coming days and weeks according to technical analysis and various data?
The price of LINK has been moving within an ascending triangle formation since November 2023. When it breaks above the upper trendline and shows an increase equal to the difference between the upper and lower trendlines, it reaches its formation target. LINK may experience a similar surge in December 2023 and is currently trading around $16 around the upper trendline.
If the price of LINK continues to rise steadily above the resistance level of $16, the formation target of the triangle can aim for a further increase of 20% from the current price levels, surpassing $19.50.
In addition to technical analysis suggesting a potential 20% increase for Chainlink in December 2023, data tracking LINK supply on crypto exchanges also supports this trend. As of December 3rd, there are approximately 150.39 million LINK tokens on crypto exchanges, the lowest level seen since February 2020. This data shows a 19% decrease compared to the peak supply of 185.71 million LINK seen in August 2023, and this supply contraction is accompanied by a 150% increase in token value.
The decrease in token supply on exchanges indicates that investors prefer to hold their LINK assets rather than exchange them for other assets. Therefore, if demand does not decrease, there is an increasing potential for LINK to continue its bullish run in 2023. According to data tracked by blockchain data analysis platform Santiment, there is still strong demand for LINK among whales. Specifically, the top 200 whale addresses have accumulated LINK tokens worth $50 million since the beginning of November, and this development is seen to contribute to a 50% increase in LINK’s market value.