Chainlink (LINK) Analysis: Whale Activity Propels LINK to 3-Year High Above $29

Chainlink (LINK) has reached a significant milestone, breaking past $29 for the first time in over three years. 

This rise has attracted attention across the crypto space, with many tracking its sustained momentum. According to data from Santiment, the price increase is largely driven by whale activity, as large holders have been steadily accumulating LINK over the past two months.

LINK traded at $28.21 at press time, reflecting a 17.81% rise in the last 24 hours and a 15.99% gain over the past week. With a circulating supply of 630 million tokens, LINK’s market capitalization has grown to $17.6 billion, alongside a trading volume of $4.4 billion over the last 24 hours.

Whale Activity Fuels the Price Rise

Recent data from Santiment highlights the role of whales in LINK’s price surge. Holders with over 100,000 tokens have collectively acquired 5.69 million LINK in the past two months. This accumulation coincides with retail investors selling a nearly equivalent amount—5.67 million tokens—during the same period.

Source: Santiment

Retail selling is likely linked to impatience, profit-taking, or concerns about short-term price corrections. On the other hand, the steady buying by whales signals confidence in the token’s long-term value. 

Historically, shifts in LINK ownership from smaller investors to large holders have aligned with periods of upward price pressure.

Technical Indicators Confirm Uptrend

Chainlink’s price momentum is supported by strong technical indicators. The price is trading well above the 20-day Bollinger Band midline of $21.63, with the bands widening to indicate higher volatility. This suggests the potential for continued price movement in either direction. 

The MACD indicator also signals strength, with the MACD line (2.722) positioned above the signal line (2.552), confirming bullish momentum.

Source: TradingView

The Relative Strength Index (RSI) stands at 69.77, close to the overbought level of 70. While this indicates strong demand for LINK, it also points to the possibility of a short-term price pause or consolidation.

Bitcoin and Partnerships Support LINK’s Growth

Chainlink’s rise can also be linked to its partnerships with leading organizations, including Coinbase, Swift, and Citi. These partnerships have expanded the token’s use cases within the blockchain and decentralized finance (DeFi) sectors, solidifying its position as a critical player in the ecosystem.

Additionally, the broader market environment, particularly Bitcoin’s strong performance, has created a favorable backdrop for LINK. Bitcoin (BTC) recently reclaimed the $100,000 level, providing stability and boosting confidence across the cryptocurrency market. 

Analysts note that as long as Bitcoin maintains its upward trend, altcoins like LINK are likely to benefit.

While optimism around LINK remains high, market participants remain cautious, closely watching external factors such as Bitcoin’s trajectory and overall market sentiment.

FAQs

What caused Chainlink’s recent price surge above $29?

A: Whale accumulation of 5.69 million LINK and retail selling have driven the price increase.

How does Bitcoin’s performance impact Chainlink’s price?

A: Bitcoin’s rally to $100,000 has created a favorable market environment, boosting confidence in altcoins like LINK.

What technical indicators suggest Chainlink’s bullish momentum?

A: The MACD shows a bullish crossover, and LINK is trading above the 20-day Bollinger Band midline.