- Chainlink is on the verge of a breakout.
- Whales are accumulating LINK as we approach the year-end.
Chainlink [LINK] has moved closer to a potential breakout while nearing a pivotal point in the market.
At the time of writing, LINK was trading within a falling wedge pattern on the weekly chart, with many traders predicting a notable upward shift in the near future.
Such developments could elevate LINK’s price as it becomes an increasingly significant entity within the cryptocurrency sector.
LINK price movement and forecast
Analyzing recent price trends, Chainlink has observed a gain of approximately 0.5% over the past week. However, in the last 24 hours, it experienced a decline of 5.6%.
In spite of these short-term setbacks, LINK’s trading volume increased by over 10%, with around $290 million in transactions.
The volume-to-market-cap ratio stood at 4%, reflecting adequate liquidity to sustain ongoing trading activities.
As LINK heads toward a potential breakout, the $15 level becomes a focal point. A successful break and hold above this resistance could set off a rally with a target of $50 by next year.
Source: TradingView
Currently, LINK is trading below the 50-day moving average, and reclaiming this level could rejuvenate bullish sentiment. Traders are keenly observing this indicator, as it might indicate a breakout from the falling wedge pattern.
Should a breakout ensue, LINK could experience a substantial upward movement, making it a leading asset in the cryptocurrency market as the year closes.
Whale activity and significant trades
Large trades and whale activities are providing additional insights into LINK’s forthcoming trajectory. On the K-line chart, significant trades are represented as circles, where the size indicates the quantity traded.
Whale activities are illustrated by horizontal lines, with significant orders for Chainlink centered around the $11 region.
These transactions imply that major investors are positioning themselves for a rally, as whales typically accumulate assets when they anticipate a price surge.
The longer these orders remain open, the higher the likelihood of driving LINK’s price upward.
Source: Coinglass
LINK’s growth into RWA and AI
Chainlink’s advancements into real-world assets (RWA) and artificial intelligence (AI) are also paving the way for a significant price increase.
As a provider of secure oracles for smart contracts, Chainlink is ideally positioned for the forthcoming tokenization of RWAs.
With major financial institutions like BlackRock exploring the tokenization of stocks, bonds, and real estate, Chainlink may become an essential infrastructure for these assets.
Read about Chainlink’s [LINK] Price Prediction for 2024–2025
This integration could attract substantial liquidity into LINK, consequently driving its price up further.
Chainlink is at a crucial juncture. If LINK maintains key support levels and surpasses $15, the potential for growth may be substantial.
