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Key Insights:
- LINK’s largest wallets increased holdings to 18.15% of supply as Chainlink price surged.
- Analysts highlight a falling wedge pattern, suggesting a potential breakout.
- Whale investors boosted LINK holdings by 0.18%, while retail traders reduced positions.
Chainlink price surged 17% in the past 24 hours, reaching above $16 as buying pressure intensified. The sharp increase follows a recovery from lows near $13.20, with the crypto maintaining a steady upward trajectory. Despite the rally, LINK remains 11.9% lower over the past two weeks and 22.2% down year-over-year.
Chainlink Price Momentum and Resistance
LINK’s price action reflects growing market confidence, with the 24-hour chart showing increased volatility and a breakout past the $15 resistance level. Over the past hour, LINK gained 3%, reinforcing short-term bullish sentiment. However, its long-term recovery remains uncertain as the market evaluates key resistance levels.
Meanwhile, data from Santiment highlights a correlation between LINK’s price fluctuations and wallet accumulation patterns. The five largest wallets collectively hold 18.15% of the total supply, valued at approximately $2.93 billion.
These wallets have consistently increased their holdings, suggesting long-term confidence despite recent market volatility.
The largest holder, identified as 0xf978, possesses 50.59 million LINK tokens, or 5.06% of the supply. The remaining four wallets hold between 30 million and 40.87 million LINK each. The data indicates that major investors have strategically accumulated LINK at key market corrections.
Analysts Identify Potential Price Breakout
Elsewhere, technical patterns indicate a breakout as a market analyst keeps tabs on LINK’s price rally. Jonathan Carter’s analyst chart depicts a falling wedge pattern on the daily time frame. This ascending triangle pattern is a bullish reversal formation and tend to be a move on the upside.
The descending resistance level has been able to reject price advances, therefore it hold some significance.
Also, the descending support level has all indications of great buyer activity. LINK price has been consolidating very close to this lower boundary, while volume decreases within the wedge, which is a typical pattern that precedes a burst of the wedge.
Per the analyst, a rebound from the support level would favor Chainlink with some potential price targets at: $15.50, $17.70, $20.00, $22.40 and $26.70 in the medium term. As of this writing, one of the targets, $15.50 has already been breached, as Chainlink price sits at $16.17.
Ownership Distribution and Investor Trends
Notably, IntoTheBlock’s on-chain data shows that LINK’s ownership amongst different market participants has seen major shifts. During the past month, whales have boosted their shares of LINK’s supply by 0.18%, controlling over 50%. This indicates the large investors are still very confident in LINK despite the market circustances.
In the investor category, covering medium sized holders, surged 0.05% in the past 30 days. The gradual accumulation trend indicates that institutional and strategic investors are getting more and more interested in LINK. On the contrary, retail traders lowered their holdings by 0.29% during the same period. The decline of LINK could mean smaller investors that incurred profits are taking them or are pulling out of positions after a LINK rally.
Additional data on LINK’s ownership distribution indicates changes in behavior among different investor groups. The past month also saw a 0.86% increase in long term holdership (holding for over a year).
At the same time, mid term holders (1 – 12 months) witnessed a 4.98% growth, which indicates growing confidence from swing traders and early investors.
However, short term traders (who hold less than a month) have declined by 13.33% in the last 30 days. This implies there’s going to be less speculative trading and bigger players can pick up LINK at lower prices.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
