Chainlink (LINK) is demonstrating a bullish rally, indicating the conclusion of a correction phase with a breakout from a trend line. This upward momentum has the potential to exceed the $21 peak. As the altcoin market shows signs of recovery, LINK has seen a significant reversal rally, moving from a downtrend to an uptrend. In a span of just four days, the altcoin’s price surged by 16%. However, it recently experienced a 2.14% intraday dip and is currently trading at $14.09, suggesting a potential rise towards the $20 mark in the near future.
Chainlink’s Performance: Can It Hit $20?
Chainlink’s performance has garnered the attention of investors after breaking a series of four bullish candles, highlighted by a 7% jump. The bullish engulfing pattern prompts questions about whether the price will return to $20.
In terms of price behavior, LINK reversed from the double bottom formation at the support zone of $12.24, leading to a 13.73% gain over the past five days, testing the neckline at $14.50.
The price movements suggest that the rally breaking the trend line is gaining traction. However, the recent intraday drop hints at a potential retest of the broken resistance trend line.
Why Are Whales Accumulating LINK?
A well-known crypto analyst, Ali Martinez, recently tweeted that Chainlink whales have purchased over 10 million LINK tokens worth $140 million in the last two weeks. This significant accumulation by large investors bolsters the bullish outlook for LINK.
Technical indicators reinforce the positive sentiment. The MACD shows a positive crossover with the signal line nearing the zero line, suggesting a bullish reversal. Additionally, the RSI is trending upwards, surpassing the midline and approaching the overbought zone, indicating strong momentum for an ongoing bull run.
Key Takeaways for Investors
- Chainlink’s price has the potential to surpass $21 following a bullish trend line breakout.
- A recent 16% price surge and subsequent 2.14% intraday drop suggest a target of $20 in the upcoming weeks.
- Whales purchasing $140 million worth of LINK in two weeks supports a bullish perspective.
- Technical indicators like MACD and RSI indicate strong momentum for a continued bull run.
In conclusion, Chainlink’s recent performance signals a promising upward trend, driven by significant whale accumulation and positive technical indicators. Investors should closely monitor these developments as LINK shows potential for substantial gains.