Chainlink (LINK) price has rebounded by over 240% from its yearly low of around $4.70 in June 2023. It may rise further still in the coming days and weeks, according to a slew of on-chain and technical indicators, as discussed below.
LINK price nears ascending triangle breakout
LINK's price has been consolidating inside what appears to be an ascending triangle pattern since November 2023.
Ascending triangles are bullish continuation patterns when formed during an uptrend. They resolve when the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and lower trendlines.
It appears LINK eyes a similar breakout scenario in December 2023, now treading around the triangle's upper trendline near $16. Suppose it rises decisively above the said resistance level. Then, its triangle breakout target will come to be over $19.50, up 20% from current price levels.
Thus, if it rises decisively above the said resistance level then its triangle breakout target will be over $19.50, up 20% from current price levels.
Chainlink supply on exchanges plunges
More clues about Chainlink's potential 20% rally in December 2023 come from data tracking LINK supply across crypto exchanges (the red wave in the chart below).
As of Dec. 3, crypto exchanges held about 150.39 million LINK tokens, the lowest since February 2020. That marks a 19% drop from the 2023 peak of 185.71 million LINK in August, occurring alongside a 150% rise in the token's value.
A depleting supply across exchanges hints at traders' preference for holding LINK tokens over selling them for other assets. So, LINK's potential to continue its 2023 bull run increases if demand doesn't diminish.
LINK whales are accumulating
Strong demand for LINK tokens persist among its richest addresses, according to data tracked by Santiment.
Also read: Is the altcoin season here? How to trade small-cap coins amid high volatility
Notably, Chainlink's top 200 whale addresses have accumulated $50 million worth of LINK tokens since the beginning of November.
That coincides with a 50% rally in LINK's market valuation, suggesting that whales accumulated the token at its higher highs. Simply put, Chainlink's top holders believe its value will rise further by New Year's.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
