Chainlink (LINK) Surges: $24 Reclaimed, 80%+ Rally Possible?
Chainlink's Bullish Momentum: What's Driving the Price?
Chainlink [LINK] is demonstrating significant strength, outperforming many top cryptocurrencies. Recent data suggests a potential for substantial further gains.
Key Takeaways:
- $24 Reclaimed: LINK has successfully moved above the $24 mark.
- Whale Accumulation: Increased activity from large holders indicates strong confidence.
- Supply Squeeze: A 9.8% drop in exchange supply is contributing to upward price pressure.
- LINK/ETH Ratio: Rebounding off key support, mirroring patterns that preceded previous rallies.
LINK began August with a 35.34% weekly gain, surpassing Ethereum’s [ETH] 21%. Month-to-date, LINK is up approximately 42%, double ETH's gains. The LINK/ETH ratio is approaching a monthly support zone historically associated with significant LINK rallies. During Q4, this ratio preceded an 82%+ spike in LINK's price, compared to ETH's 28%.
This divergence is evident across multiple timeframes. The daily chart shows LINK up 13%, while ETH is up 9%, despite institutional ETH inflows. Chainlink's price structure is holding, and the recent breach of the $24 resistance level is a critical development.
FOMO and Whale Activity Fueling the Surge
Chainlink has reclaimed the $24 level, marking its first close above this point since February 2nd. The current market dynamic is influenced by FOMO (fear-of-missing-out). HODLers are demonstrating conviction by not rushing to sell.
Despite breaking overhead resistance, realized profit-taking remains muted, suggesting that sell-side liquidity is limited. Elevated whale activity, with 713 on-chain transactions per day, points to FOMO driving the current price action.
Furthermore, on-exchange LINK supply has decreased by 20.69 million LINK (-9.8%) in the last eight weeks. This tightening liquidity is helping to push the price higher, with concentrated buying taking place.
Overall, Chainlink's market structure remains constructive, with ongoing accumulation supporting further upside as FOMO continues to outweigh profit-taking. For developers building on Chainlink, Codeum offers blockchain security services, smart contract audits, and KYC solutions to help secure their decentralized applications.