Posted: December 23, 2024

• Whale accumulation and technical indicators suggest LINK could rebound from its critical $21 support.
• Rising transactions, active addresses, and falling reserves reinforce confidence in LINK’s bullish potential.

Chainlink [LINK] is making waves in the crypto market, with nine fresh wallets withdrawing 362,380 LINK worth $8.19 millio from Binance in just 48 hours. This significant whale activity highlights growing interest in LINK’s potential, sparking speculation about a price breakout.

 At press time, Chainlink was trading at $21.87, reflecting a 4.62% drop in the past 24 hours. However, these movements hint at an impending shift in momentum that could reshape its trajectory.

Key resistance level could define LINK’s next move

The technical analysis shows Chainlink facing a critical moment. After surging to $32 in November, LINK retraced to its current level near $21, sitting at a significant support zone. This level holds the potential to serve as a launchpad for another bullish attempt toward $32. 

However, if it fails to sustain, Chainlink could fall further, testing lower support levels. Therefore, traders should closely monitor these price levels as they define LINK’s immediate outlook.

LINK’s growing transactions hint at brewing activity

The transaction count for Chainlink increased by 0.76% in the last 24 hours, climbing to 10K. This uptick in activity indicates heightened on-chain movement and renewed interest among market participants. 

Additionally, such an increase often correlates with price volatility, suggesting that Chainlink might be gearing up for significant movement. Therefore, this metric underscores the market’s anticipation for LINK’s next price action.

Rising active addresses reflect network confidence

Active addresses also grew by 0.83% in the past day, reaching 5.7K. This rise aligns with whale accumulation, signaling stronger engagement within Chainlink’s network. 

Additionally, increasing active addresses often point to growing adoption, reinforcing bullish sentiment. Therefore, this data supports the view that LINK’s network is positioning for further expansion.

Declining exchange reserves could limit selling pressure

Exchange reserves for Chainlink fell by 0.26% to 161.5 million over the last 24 hours. This decline suggests reduced selling pressure as holders move tokens off exchanges, potentially to hold for the long term. 

Additionally, the combination of whale accumulation and shrinking reserves strengthens the argument for a bullish breakout.

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LINK’s recent whale activity, combined with rising transactions, active addresses, and declining exchange reserves, strongly suggests a bullish outlook.

Therefore, Chainlink appears poised to reclaim its $32 resistance in the near future, provided it maintains its critical support at $21.87.