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Chainlink (LINK) has witnessed a noteworthy surge in its price over the past week, defying the increasing overhead supply pressure that typically exerts downward force on cryptocurrencies. Despite these challenges, LINK’s price has managed to maintain a slow yet steady rally, driven by the influence of a rising channel pattern.
As of the latest data from CoinGecko, Chainlink is currently trading at $12.44, marking a 1.3% gain in the last 24 hours and a remarkable 12.9% rally over the past seven days. This upward trajectory has left many investors and analysts wondering whether this rally is likely to persist or if a correction is on the horizon.
Rising Channel Pattern Supports Chainlink Rally
According to LINK’s price chart, LINK buyers may find a strong support level at $10.75. This support trendline is critical, as it serves as a safeguard against a steep correction. As long as this trendline holds, it suggests that LINK may avoid a sharp decline. A rebound from this level could empower buyers to challenge the immediate resistance at $12.6, paving the way for an advance towards the $14.65 to $15 price range.
However, amid the price action, the cryptocurrency community is abuzz with news of a substantial Chainlink transfer, meticulously tracked by Whale Alert. An impressive 3.8 million LINK tokens, equivalent to approximately $46 million, were moved between wallets of unknown origin. Such large-scale transfers within the crypto space often trigger close scrutiny, as they can potentially foreshadow significant market-moving events, including large sell orders or liquidity provisions.
🚨 🚨 3,894,965 #LINK (46,000,786 USD) transferred from unknown wallet to unknown wallethttps://t.co/CKzDNxxG9O
— Whale Alert (@whale_alert) November 5, 2023
With these developments in mind, the future of Chainlink’s price trajectory remains uncertain. The rising channel pattern and recent gains indicate a degree of bullish sentiment, but it’s important to remain cautious, as the cryptocurrency market is known for its volatility.
LINK market cap at $6.942 billion on the daily chart: TradingView.com
A Crucial Level For LINK’s Future
The ability of LINK to maintain its rally and potentially breach the $12.6 resistance level will be closely monitored by traders and analysts alike. It is essential to keep an eye on the $10.75 support level, as a breach could signal a change in the current trend. Additionally, large transfers like the one observed may hint at influential market actions on the horizon.
Chainlink (LINK) is showing resilience in the face of overhead supply pressure, and its performance over the coming days will be a focal point for the crypto community. While the current rally is promising, investors should exercise caution and remain attentive to potential market-moving events that may arise.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
