Chainlink (LINK) is experiencing significant growth, increasing over 12% in the last 24 hours, but experts predict a potential pullback.
Reasons Behind LINK Price Surge
The main reason for today’s price rise for LINK is whale accumulation. Just hours before the pump occurred, a whale purchased 938,489 LINK (worth $21.25 million) using 4,806 ETH. Additionally, data shows large transactions over $100k spiked to a 7-month high of 992 on August 16, indicating institutional investor activity entering the market. It is also noteworthy that LINK exchange balances have dropped 5.2% this month, suggesting fewer tokens are available for selling pressure.
Technical Analysis of LINK Chart
Crypto experts indicate that the LINK price attempt failed at the mid-channel resistance on the chart. If the pattern holds, a pullback towards $20 may occur before bulls re-enter the market. The chart indicates LINK has been in an ascending channel for several months, with each test of support leading to another leg upward. The primary breakout zone is identified in the $30-$36 range, and if momentum continues, the upper target for the channel could reach approximately $42.
Future of Chainlink and Predictions
Despite expectations of a short-term correction, Chainlink maintains a strong position fundamentally and technically. Whales are buying, and institutional investors are getting involved while the chart structure still favors bulls. The ability of LINK to stay above $20 will be crucial, but the path to $30 and beyond remains realistic.
The price increase of Chainlink (LINK) is attributed to the activity of large investors and increasing institutional investment. Despite anticipated short-term dips, the overall trend remains positive.
