As 2024 approaches, altcoins are stepping up their game, with Chainlink (LINK) making significant strides. In the last 24 hours, LINK’s price soared by 17% to $17.50, and its trading volume nearly doubled to $1.1 billion. This price surge appears to be fueled by substantial whale activity.
On-chain data from the past week reveals that whales have been accumulating LINK, with the price consolidating above $14. Crypto analyst Ali Martinez reported that whales have purchased approximately 7 million LINK, worth about $105 million, indicating growing confidence among major players in the Chainlink ecosystem.
The current price chart suggests that LINK is poised to break out from a strong consolidation zone. If the altcoin’s price remains above $17, a breakout from the flag and pennant formation could set the stage for a rally up to $25 by 2024. Currently, the nearest significant resistance level for LINK is at $20.
Various on-chain metrics show a positive outlook for Chainlink, with the only negative being a decrease in development activity, which market observers attribute to the holiday season. Despite this, the decentralized oracle network has seen notable increases in social and trading volumes during the same period.
Data from on-chain analytics provider Santiment indicates a significant rise in active wallet addresses from September to mid-November, with a marked increase at the beginning of December. This suggests heightened network activity and adoption during this time frame.
Despite these advancements, the Network Value to Transactions (NVT) Ratio, a crucial metric for assessing LINK’s price, has been declining since September. The drop in the NVT ratio, which reflects the relationship between market value and on-chain transaction volume, suggests that LINK may be undervalued.