Chainlink’s price surge coincides with a 177% rise in trading volume and a boom in whale holdings. The technical analysis targets $32, but the rising adoption and Chainlink’s role in Brazil’s CBDC project hint at an extended rally.
With a market cap of $16.16 billion, the Chainlink LINK $13.36 24h volatility: 3.0% Market cap: $8.53 B Vol. 24h: $517.57 M price sustains dominance above the crucial $25 support. At press time, the LINK token is trading at a rate of $26.02, with a 2.05% surge over the past 24 hours.
Supporting the ongoing bullish trend, the 24-hour volume surged by 177%, reaching $2.32 billion. Amid the surge in trading volumes, the 7-day Chainlink price has increased by 30% over the last week and 91% over the last 30 days.
Rounding Bottom Reversal Targets $32
Despite the recovery run, the bullish exhaustion led to a bearish start this week, with an intraday pullback of 0.30%. The bull run started on November 5th from the $10 psychological mark and has now resulted in a surge of 159%.
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Photo: TradingView
In the weekly chart, the bullish trend broke above the 50% and 61.80% Fibonacci levels at $16.19 and $21.42. The 61.80% Fibonacci level acted as a neckline of a rounding bottom reversal, leading to a new breakout rally.
Chainlink’s On-chain Targets ATH
With last week’s impressive rally, the Global In and Out of the Money indicator positions Chainlink inching closer to a new all-time high possibility. The “at the money” range currently extends from $24.40 to $28.13.
Based on the volumes, just 6.57M LINK token supply pressure is present from $28.13 to $49.25. Thus, the supply held by buyers with an average price greater than the current price accounts for just 0.66% of the total supply.
With 968.51 million LINK tokens in the money zone, the 96.85% supply is distributed among profitable investors. Hence, the LINK price movement will unlikely face significant resistance beyond $28.
Hence, a push in the buying pressure will likely result in a surge to hit the $50 psychological mark. The current all-time high price for Chainlink is $53.02, registered in the 2021 bull run.
Chainlink Whales Add $5.84 Billion in 7 Days
The Chainlink whales have increased their holdings significantly over the past seven days. The balance by holdings in USD terms showcases the whale holdings increased to $19.61 billion.
This has increased significantly compared to the $13.77 billion over the past seven days. Furthermore, the 30-day change in whale holdings reflects a 101.97% increase.
Hence, with the growing whale support, broad market sentiments expect a bullish trend ahead for Chainlink.
Chainlink Adoption Boost and Brazil’s DREX
Amid the bull market, the rising demand for oracles is boosting Chainlink’s adoption. In a recent tweet, the team revealed the weekly update of 7 integrations of the Chainlink standard across four services and seven different chains.
Furthermore, in Brazil’s CBDC project, Chainlink joins the likes of Banco Inter, Microsoft, and the 7Comm consortium. As a bridge between TradFi and DeFi, Chainlink will design a trade finance solution for the second phase of Brazil’s DREX project.
Chainlink’s CCIP protocol will handle the trustless messaging between the Banco Central do Brasil and local central banks. It will ensure the transactions are compatible and settled efficiently.
Will LINK Prices Cross $30?
Last week, the 37.97% surge creating a bullish engulfing candle marked the rounding bottom breakout. LINK prices are between 61.80% and 78.60% Fibonacci levels.
The increased buying pressure has resulted in a golden crossover between the 50-week and 200-week EMA lines. Further, the MACD and signal lines trace a growing trajectory. Hence, the technical indicators maintain a BUY signal for LINK tokens.
Based on the Fibonacci levels, the uptrend could test the 78.60% level at $31.918 this week. Conversely, a retest of the 61.80% level at $21.42 is possible in a broader market pullback.
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