Chainlink (LINK) has experienced a surge of 12.9% in just 24 hours, signaling a significant turnaround in its fortunes. The altcoin had been struggling with low demand since hitting $27 three months ago, but over the past 30 days, buyers have returned to the market. This renewed interest is reflected in the consistent outflows from exchanges, with over $120 million worth of LINK being accumulated in the last month alone.
The growing accumulation of Chainlink is evidenced by its Exchange Netflow, which has remained negative for the past 12 days. This suggests that investors are bullish and are actively accumulating LINK tokens. Additionally, whales have also increased their netflow to hit a 2-month high, further indicating strong accumulation by large holders. This overall bullish sentiment among market participants is fueling optimism for a potential price increase in the near future.
In addition to the capital inflows, Chainlink’s fundamentals are also strengthening, with active addresses on the network rising from 2.3k to 3.6k in just four days. This surge in active addresses indicates growing interest in the network, which typically leads to a bullish bias in the market. As of now, Chainlink is trading at $14.95 after a 12.05% increase on daily charts, with a 22.38% rise on weekly charts. The altcoin has broken out of a descending triangle pattern, facing its next resistance level at $16.12.
Despite the recent price pump, there is a possibility that some investors who have realized losses may choose to take profit, leading to a pullback to $13.7. However, the overall sentiment for Chainlink remains optimistic, with the growing accumulation and strengthening fundamentals pointing towards a potential further rise in prices. As LINK continues to gain traction and interest in the market, it will be interesting to see how the altcoin performs in the coming days and weeks.
