Chainlink (LINK) has increased by more than 30% in the past week, with daily trading volume reaching $1.35 billion. At the time of writing, LINK is trading around $21, having slightly decreased by 1% from the previous day's close.
In fact, this altcoin may be preparing for a perfect breakout scenario. On-chain data and macroeconomic factors also support the price increase.
Evaluating the accumulation activity of LINK whales.
Data from Lookonchain shows strong buying activity, supported by a withdrawal flow from CEX exchanges and new spot buy transactions. In fact, the largest transaction was a withdrawal of 510,000 LINK (equivalent to $11.13 million) from Binance to Compound within two days.
Additionally, two other whales have purchased 59,560 LINK and 44,846 LINK, bringing the total buying amount to around $13 million. This wave of buying comes from both new and existing whales.
According to IntoTheBlock, the number of active daily addresses has also increased to 9,410 from 5,500 a week ago. This can also be seen as a sign of increasing participation from both retail investors and whales.
Institutions are increasing exposure to LINK.
In addition, institutions are also beginning to participate. Chainlink's partnerships span global corporations such as Fidelity, Swift, DTCC, Citi, JPMorgan, and BNP Paribas – positioning Chainlink as a core Web3 infrastructure provider.
According to Zach Rynes from Chainlink, the Chainlink Reserve is the answer for users to pay with fiat while still tying the economic model to the project's token.
As a result, trading volume on DEX has increased, as conversions are made on decentralized exchanges. This figure has reached $1.298 billion in the past 24 hours.
Chainlink is also a strong candidate in the tokenization of Wall Street, as previously mentioned by the U.S. Securities and Exchange Commission (SEC).
Aside from institutional participation, what is the current price trend? Is it heading in the right direction?
Is this altcoin undervalued?
In terms of price charts, LINK broke out after retesting the double bottom pattern at $18 – simultaneously breaking the downward trendline that started last December.
At the time of writing, the price action seems to be aiming for the $30 mark. However, it first needs to break through and maintain above the $24 threshold.
So what about expert forecasts?
Analyst Posty calls LINK 'undervalued' and sets a bold target of $100. Posty believes LINK's market cap of $15 billion could rise to $100 billion in the future.
Aside from stablecoins, so far only Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) have achieved this level of market capitalization.
