Oracle service provider Chainlink native token LINK has soared today as the crypto market registers a significant rebound. The cryptocurrency is up 9.02%, trade at $6.80 with a trading volume of $198 million, representing an increase of over 179% in the last 24 hours.
One of the factors likely to influence LINK’s price growth in the coming days is the massive movement of tokens from the network’s wallet to exchanges. On September 16, four wallets were associated with Chainlink transferred 18.75 million LINK tokens across platforms, amounting to $119 million.
These wallets were originally intended for storing tokens that were not yet in circulation. But recently, about 15.7 million LINK tokens (about $100 million) left these wallets and went straight to Binance. Additionally, 3.05 million LINK tokens (approximately $19 million) left the wallet in a multi-signature wallet identified as 0xD50f.
Following these major on-chain activities and potential implications, investors are curious to see how LINK price will react.
LINK breaks above the $6.3 resistance level
LINK is in an uptrend, forms a bullish engulfing pattern breaking above the $6.3 resistance level. Although LINK is still below its 200-day Simple Moving Average (SMA), today’s green candle has broken above the 50-day SMA, indicating increased pressure from buyers.
The buyers at the $6.1 support level have forced the cryptocurrency to recover after the short retracement between September 16 and 17. Also, the Relative Strength Index (RSI) shows a value of 58.00, rising from the neutral zone and approaching the overbought area of 70.
LINK has overcome the $6.3 resistance level today. Therefore, buyers are likely to sustain the rally in the coming days. Moreover, the moving average convergence/divergence shows a strong buy signal, confirmed by the green histogram bars.
The cryptocurrency is likely to post more price gains in the coming days as buyers continue to accumulate the tokens. However, unlocking and transferring 21 million LINK tokens on September 16 could lead to a short retracement in the long term if buyers relent.
Whales increase ownership after rapid test
Since August 31, when Chainlink partnered with Swift and other companies, LINK has shown positive market movements. The interbank communication system Fast and Chainlink, which successfully transferred tokenized value across several private and public blockchains in an experiment.
The positive development strengthened investors’ confidence in purchasing more LINK tokens, potentially increasing the value of the token. On September 7 Santiment noted that Chainlink’s top holders, those with 10,000-100,000 LINK tokens, were actively increasing their holdings.
The number of wallets holding 10,000 to 100,000 LINK tokens has increased to 3,127, the highest since December 3, 2022. These wallets have amassed $9.6 million worth of LINK in just three days, 0.154% of the total supply. Additionally, Santiment’s report revealed that 98 new wallets were created in this category.
On September 9, a crypto expert, Ali, said revealed that these whales bought over 4 million LINK coins, amounting to $24 million in just 10 days.
These accumulations show increased investor interest in Chainlink and are likely to drive demand, driving the token’s price higher in the coming days.
Featured image from Pixabay and chart from TradingView.com