Chainlink price could have established a strong bottom and aims for a 15% upswing
- The number of LINK whales remains in a strong uptrend.
- Several on-chain metrics indicate that Chainlink price is on the verge of a significant rebound.
- Chainlink remains bounded inside an ascending parallel channel.
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Chainlink price has been trending downwards for the past week, but seems to be forming a potential bottom and could see a significant upswing.
Chainlink price has defended key support level
Chainlink has formed a descending parallel channel on the 4-hour chart which can be drawn by connecting the lower highs and lower lows with two parallel trend lines.
LINK/USD 4-hour chart
A breakout above the middle trend line of the pattern at $34.4 could quickly drive Chainlink price toward the upper boundary at $39.5. The number of whales continues to increase which is a good sign for the long term.
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LINK Supply Distribution
Since March 9, 2021, the number of holders with 100,000 and 1,000,000 LINK has increased from 243 to 263. Additionally, the MVRV (30d) ratio is low and below 0% at the time of writing.
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LINK MVRV (30d) ratio
However, Chainlink continues trading inside a descending parallel channel which could see a breakdown if the key support level at $29.7 fails to hold.
LINK/USD 4-hour chart
A breakdown below this key support trend line at $29.7 will drive Chainlink price to $25 and as low as $19.7.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
