LINK - ChainLink is preparing for a big bull run?
Chainlink's native cryptocurrency LINK could be the next candidate for a major upside move. It is among the top trending cryptocurrencies at press time and its price action could point towards a breakout of the pattern.
LINK has weathered bearish doubts in the first half of the week on the back of strong bullish momentum since Sept. 7.
Alt has rallied around 20% over the past three days, confirming a return back of strong demand. However, the rally has led to a rest of its six-month support and a breakout could be in the cards.
A breakout could usher in the start of a new uptrend. A welcome relief for LINK investors given that LINK favors the downside over the past five months. Its price of $7.81 at press time is still down slightly from a two-month high of $9.48.
LINK's ongoing bullish attempt is supported by stronger accumulation than the previous attempt in July and August. This is reflected in the Money Flow Index (MFI) which shows cumulative accumulation. Polarity has been going on since the last week of August.
The spike in social media volume underscores LINK's advantage, especially given the hype about an upcoming conference. The event called Smartcon will be held at the end of September. It will feature presentations from Chainlink's team.
More observations on the sequence of events show an increase in daily active addresses. This plus the spike in whale trades confirms a demand wave responsible for the ongoing price surge.
Can LINK sustain the current rally?
LINK is currently on a recovery trajectory but there is still some uncertainty in the short term. The shift in sentiment caused by expectations of more declines in risky assets disrupted LINK's rally in the first half of August. Such an outcome could still happen again in three weeks. next.
On the other hand, LINK managed to recover despite the presence of selling pressure by some whales. Whales holding between 1 and 10 million LINK coins that have reduced their holdings over the past two days are likely to turn a profit.
Other whale categories including whales holding more than 10 million have contributed to the ongoing upward momentum. Investors should watch for a unanimous outcome when all whales are accumulating. Such an outcome would validate expectations of a sustained bullish performance in the short term.
Sep 10, 2022