- A recent $2 million whale purchase and bullish chart patterns suggest Chainlink (LINK) is poised for a potential price surge to $18.18.
- Declining exchange reserves and improving on-chain health have also reduced selling pressure.
Chainlink (LINK) is at a key moment as large investors and chart patterns suggest a big price move ahead. The token is trading within a bullish pattern, and if it breaks key resistance, it could jump 35% to $18.18. However, if it fails to hold support, a bigger drop could follow.
Whale Accumulation and Chart Patterns Suggest Volatility
A major investor recently purchased 139,860 LINK for $2 million at $14.30, increasing their total holdings to 147,553 LINK. This investor has previously made a $161,000 profit, showing a well-timed strategy. Large buys like this often signal a potential price jump, especially when combined with positive chart patterns.
At the time of writing, LINK is trading at $12.53, down 7.28% in the last 24 hours. The price is compressing within a symmetrical triangle and descending wedge, often called a megaphone. This pattern is known to signal a strong bullish breakout.
Crypto analyst Ali Martinez further cements these statistics. For bulls, the key level to watch is $15.68. A breakout here could trigger a 35% rally toward $18.18, fueled by short-covering and FOMO buying.
However, the whale’s buy price of $14.30 has acted as resistance, indicating that sellers are still active. If LINK fails to stay above the $12.57 support level, the bullish outlook could break down, possibly sending the price toward $11.50. Traders should keep an eye on these key levels, as price swings may become more intense soon.
On-Chain Metrics Paint a Bullish Picture
The MVRV Z-score is currently at 3.09, indicating that LINK is in a strong accumulation zone. This is much lower than the overheated levels above 7 seen in late 2024. Historically, Z-scores between 2 and 3 have signaled prime buying opportunities, similar to early 2023 before LINK surged 120%.
The number of daily active addresses has risen to 921, steadily increasing from March lows, showing growing user activity. While still below peak levels, this upward trend suggests renewed network engagement, which can support long-term price growth.
Additionally, exchange reserves have dropped by 3.11% to $2.15 billion, meaning fewer tokens are available for quick selling. A decline in exchange reserves often signals a potential rally as investors move their holdings into long-term storage.
Liquidity and Market Sentiment Are Aligning
A $2 million investment by a large holder comes at a time of decreasing supply and growing network activity, creating a strong bullish setup. This is driven by lower selling pressure as exchange reserves drop, increased confidence among major holders as whales accumulate, and a potential breakout due to a wedge pattern.
If LINK surpasses $15.68, it could climb to $18.18, with the next major resistance near $20. However, factors like Bitcoin ETF flows and Federal Reserve policies could slow this momentum. On the downside, if LINK falls below $12.57, it might trigger panic selling, though the whale’s presence could help support the price.