The Chainlink (LINK) cryptocurrency has recently seen major bullish signals that hint at a potential 35% breakout. A significant whale has re-entered the market and accumulated a large amount of LINK, showing a high level of conviction in the asset. This strategic move by the whale suggests that they believe LINK is poised for a major move in the market. The price of LINK has been consolidating within a symmetrical triangle and descending wedge, indicating a buildup before a potential breakout. A breakout above the $15.68 resistance level could lead to a 35% surge to $18.18, but rejections near the whale’s entry point at $14.3 suggest that bullish momentum is still being met with strong resistance.
The MVRV Z-score for LINK indicates a favorable risk-reward setup, as it is currently at 3.09, much lower than the overheated levels seen in late 2024. This metric suggests that most holders are not sitting on excessive profits, reducing the likelihood of mass profit-taking. The current MVRV level could provide a strong accumulation zone and signal the early stages of a price rally for LINK. However, attracting fresh demand is crucial for LINK to break out of this accumulation phase and move towards higher price targets.
Daily active addresses for LINK have shown a moderate increase, indicating a growing level of participation and network usage. While still below the levels seen in late 2024, this uptick in user activity suggests renewed interest in LINK and could support bullish narratives for the cryptocurrency. Additionally, exchange reserve data shows a 3.11% drop, indicating that investors are withdrawing LINK from exchanges to hold rather than sell. This trend reduces immediate sell pressure and often precedes price rallies, aligning well with a long-term accumulation phase for LINK.
In conclusion, a breakout above the $15.68 resistance level with strong volume could lead to a 35% rally for LINK to $18.18. The combination of whale accumulation, a low MVRV risk, decreasing exchange reserves, and steady user activity all support this bullish outcome. However, failing to hold above the $12.57 support level could change the narrative for LINK. The breakout zone remains the key trigger for LINK’s next significant price movement, and investors should closely monitor these levels to gauge the potential for a breakout or a breakdown in the cryptocurrency’s price.
