• Chainlink sits on top of strong support that may become jumping ground of a new bullish trend.
  • On-chain metrics support the LINK bullish view.

Chainlink (LINK) is hovering at $13. It is the seventh-largest digital asset with a current market capitalization of $5.1 billion. The coin has gained 1.5% in the recent 24 hours and lost nearly 5% on a week-to-week basis. LINK hit bottom at $11.28 on November 26 and attempted recovery. However, the upside momentum stopped short of $15, while the price entered another consolidation phase.

While the technical picture reflects a state of uncertainty, several on-chain metrics imply that the coin has a potential to retest $18 if bullish momentum gains traction.

Chainlink on-chain metrics are bullish

LINK's Network Value for Transactions signal has created a bullish divergence against price, which is a strong positive signal. It implies that the price may be ready for a bullish breakthrough. Network Value for Transactions (NVT) shows whether a certain cryptocurrency is overvalued or undervalued. It is calculated as a ratio between the network value of a crypto asset and the value of its transaction activity. When the indicator goes up, the price tends to follow shortly.

LINK's Network Value for Transactions

LINK's Network Value for Transactions

Santiment's holders' distribution data confirms the bullish forecast as whales seem to be accumulating LINKs. Over 20 addresses holding between 100,000 and $1,000,000 LINK tokens joined the network in less than a month. The number of super big whales having from 1 million to 10 million coins increased from 48 to 51 in a matter of ten days. While the number may seem insignificant, it is worth noting that each whale controls LINKs worth between $153,000 and $1.5 million.

LINK's Holders' Distribution

LINK's Holders' Distribution

LINK price forecast: Massive support around $12

However, based on IntoTheBlock's "In/Out of the Money Around Price" model, LINK sits on top of a significant support area. Over 8,400 addresses previously purchased over 43 million LINK tokens between $11.96 and $12.36, meaning that this barrier has the potential to slow down the downside momentum and trigger a new bullish wave.

LINK In/Out of the Money Around Price

LINK In/Out of the Money Around Price

On the other hand, the recovery is capped by the local resistance on approach to $14.50. It is created by nearly 13,00 addresses that bought over 22 million LINK tokens around that level. However, even if this barrier is cleared, the bulls won't face stiff resistance until $18.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP