Chainlink's Path to $30: The Factors Fuelling LINK's Price Increase

Jonathan Stoker Feb 02, 2024, 22:50pm 223 views

Chainlink's Path to $30: The Factors Fuelling LINK's Price Increase

ChainlinkChainlink$15.6 -4.61% (LINK) recently experienced a substantial increase, spurred by a rise in formerly inactive whale transactions and corroborating technical indicators. Analysts are predicting a sustained climb towards the $30 mark. Chainlink recently recorded its highest-ever "Age Consumed" metric reading at 5.38 billion on the blockchain analytics platform, Santiment.

Understanding the Age Consumed Metric

The Age Consumed metric calculates the product of tokens that have been relocated on-chain and the duration of their idleness, providing insights into whale activity.

Impact of Whale Activity on LINK's Value

A considerable amount of LINK whales, which had been inactive for a lengthy period, have started transferring massive sums back into circulation. This sudden influx, likely from holders accumulated during Chainlink's multi-year bull run, appears to have triggered a fear of missing out (FOMO), leading to a rise in LINK's price as smaller players scramble to chase profits. Furthermore, Santiment observed minor liquidations from wallets that typically indicate fear and often precede an upward trend as nervous investors exit.

Technical analyst Michaël van de Poppe sees further momentum on the horizon, indicating that LINK has confirmed a higher price low and predicting a significant breakout towards $25-30. This is contingent on EthereumEthereum$2,315 -2.42%, the leader in interoperability, driving altcoin strength.

Chainlink's Prospective Upside Potential

As Chainlink establishes bullish support around $18, van de Poppe envisages LINK having substantial upside potential. Based on data from CoinGecko, LINK has surged 14.7% in the last 24 hours. LINK is currently trading at $17.89. This is an increase from a 24-hour low of $15.48. Over the past seven days, LINK has also seen a 30% rise.

Edited by Jonathan Stoker

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