Chainlink Price Hits Highest Level in Years as Whale Moves $9.6M Worth to Aave

Chainlink (LINK) has continued its strong upward momentum, reaching its highest price since January 2022. The price surged to $26.40, pushing its market capitalization to over $16 billion. This rally is fueled by whale accumulation and positive technical signals, as well as increased investor interest in the oracle network.

Whale Accumulation Fuels Chainlink’s Price Surge

Chainlink’s price rise comes amid significant whale activity, which often signals strong market confidence. According to data from Lookonchain, a whale transferred over $9.6 million worth of LINK from Binance to Aave, a decentralized lending protocol. The whale then borrowed 4 million LINK and deposited it on Binance, likely in an effort to purchase more LINK.

In addition to this, other whales have also made significant moves. One whale transferred $7.16 million worth of LINK from Coinbase to a self-custody wallet, while another moved $2 million worth of tokens to OKX. These large transactions suggest that whales are accumulating LINK, likely anticipating further price increases.

Continued Strong Demand for LINK

The ongoing whale accumulation is seen as a positive catalyst for the price of LINK. According to Nansen, the number of LINK coins on exchanges has decreased, signaling reduced selling pressure and increasing demand for the token. Despite the price rise, Santiment reports that the surge has occurred with relatively little fear of missing out (FOMO), suggesting that the rally may have more room to run.

Chainlink Technical Analysis

From a technical perspective, Chainlink’s recent price action shows strong bullish signals. The weekly chart reveals a powerful recovery, with LINK flipping the key resistance level at $22.85 (the highest swing from March 11) into support. This is a significant milestone, as it indicates the coin is establishing a solid foundation for further price gains.

Additionally, Chainlink has reached the 50% Fibonacci Retracement level and has flipped the ultimate resistance level identified by the Murrey Math Lines tool. The coin remains above the 50-week and 100-week moving averages, which adds to its bullish outlook.

Price Targets

In the short term, the next key target for Chainlink is $31.25, as indicated by the Murrey Math Lines tool. This level represents an overshoot above the current resistance and would mark a significant continuation of the rally.

Looking further ahead, the long-term target could be $52, which would bring LINK close to its all-time high. If the bullish trend continues, Chainlink could see substantial gains over the next few months.

Potential Risk

However, the bullish outlook for Chainlink will remain intact as long as the price stays above the key support level at $22.85. If LINK falls below this level, it could potentially drop to $20, invalidating the bullish scenario.

Chainlink’s price surge is supported by strong whale activity, positive technical signals, and a growing demand for the token. With whales continuing to accumulate LINK and the coin successfully flipping key resistance levels into support, Chainlink appears poised for further gains. If the current trend continues, it could soon reach the short-term target of $31.25 and potentially even revisit its all-time high of $52 in the long term. However, a drop below the key support level of $22.85 would signal a reversal of the current bullish trend.