Chainlink (LINK) has successfully broken out of a bullish pattern and is currently returning to retest the breakout zone, continuing to maintain its growth momentum.
Meanwhile, whales are showing strong interest and confidence in this token, as accumulation continues despite the current price increase.
Whale activity and price increase
Recently, a well-known expert revealed that whales have purchased over 8 million LINK tokens in the past month.
During this period, LINK has increased over 58%, from $12.33 to $19.4.
During the price increase, the asset surpassed several important resistance levels, including the downtrend line and the horizontal resistance level of $18 – which has acted as a reversal point multiple times in the past.
LINK is currently maintaining its upward momentum, with a 4.8% increase in the past 24 hours and holding steady around the $19.48 mark.
During the same period, the participation of investors and traders surged, leading to trading volumes that were 6.5% higher than the previous day.
Whales ramp up market participation
According to the on-chain analysis platform IntoTheBlock, the participation of whales continues to increase significantly despite the rising prices.
Data shows transactions valued between $1 million and $10 million have surged over 1,400%, while transactions from $100,000 to $1 million increased by 463%.
This reflects confidence in the potential future price increase of the asset, especially after LINK successfully retested the breakout zone at a crucial level.
Chainlink: Price levels to watch
Technical analysis indicates that LINK has recently broken out and successfully retested a double bottom pattern — a bullish signal and is now poised for significant growth in the near future.
If the bullish momentum continues, LINK could rise an additional 20% and reach the $23 mark in the near future. However, this can only happen if market sentiment remains positive and LINK holds above the $18 level.
Meanwhile, LINK's Relative Strength Index (RSI) is currently at 82, indicating that the asset is entering overbought territory and may face a correction in the coming days.
Exchange inflows and profit-taking potential
Data from the on-chain analysis platform CoinGlass shows that many LINK holders are taking profits amid the strong rally.
Specifically, in the past 24 hours, exchanges have recorded inflows of approximately $1.74 million worth of LINK, signaling a high likelihood of a sell-off scenario, which could slow LINK's current upward momentum.
However, when aggregating all indicators, it can be seen that the bulls currently dominate this asset and the price is likely to continue the upward trend until it hits the next resistance level.
