• Chainlink price retests and finds support around its descending trendline at $16.91, while eyeing a recovery ahead.
  • On-chain data paints a bullish picture as LINK’s daily active addresses and revenue generated are rising.
  • Supply Distribution data shows that two cohorts of whales bought LINK during the recent price dip.

Chainlink (LINK) price is retesting and finding support around its descending trendline throwback at $16.91 this week, eyeing a recovery ahead. On-chain data supports the recovery as LINK’s daily active addresses and revenue generated are rising. Moreover, LINK’s Supply Distribution data shows that two cohorts of whales bought LINK during the recent price dip, hinting at a recovery ahead.

LINK holders bought the dips

Santiment’s Supply Distribution metric shows that the whales holding LINK tokens between 1 million and 10 million dropped from 195 million on Saturday to 190.72 million on Wednesday. Meanwhile, wallets holding 100,000 to 1 million and 10 million to 100 million surged from 155.31 million to 159.53 million and 479 million to 480.78 million, respectively, in the same period.

This development shows that the first cohort of whales could have fallen prey to the capitulation event. In contrast, the second set of wallets seized the opportunity and accumulated Chainlink at a discount during the recent price dip, bolstering investors’ confidence in LINK.

Chainlink supply distribution chart. Source: Santiment 

Chainlink supply distribution chart. Source: Santiment 

Another aspect bolstering the platform’s bullish outlook is a recent surge in Chainlink blockchain usage. Token terminal data shows that LINK’s daily active addresses rose from 2,900 on Saturday to 6,300 on Monday, the highest level since December 13.

LINK active addresses chart. Source: Token Terminal

LINK active addresses chart. Source: Token Terminal

Additionally, Token Terminal data shows that LINK generated $4.5k in revenue on Monday, the highest daily revenue collected since December 21, further bolstering the bullish outlook.

Chainlink Revenue chart. Source: Token Terminal

Chainlink Revenue chart. Source: Token Terminal

Chainlink Price Forecast: LINK retests its descending trendline throwback support 

Chainlink price declined more than 17% in the previous week. At the start of this week, it retested, found support around its descending trendline (drawn by joining multiple highs since early November 2021) throwback, and is trading around $19.88 on Wednesday. This descending trendline roughly coincides with the 50-day Exponential Moving Average (EMA) at $18.88, making this level a key reversal zone. 

If the descending trendline supports, LINK will extend the rally toward its December 13 high of $31.20.

The weekly chart's Relative Strength Index (RSI) reads 52, above its neutral level, indicating bullish momentum. However, the Moving Average Convergence Divergence (MACD) indicator is about to trigger a bearish crossover on the weekly chart. Traders should be cautious as a bearish crossover suggests a downward trend.

LINK/USDT weekly chart

LINK/USDT weekly chart


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Storj Price Forecast: Bulls aiming for double-digit gains

Storj Price Forecast: Bulls aiming for double-digit gains

Storj (STORJ), an open-source platform that leverages the blockchain to provide end-to-end encrypted cloud storage services, continues to trade higher by 4.4%, around $0.39 on Tuesday after rallying 5% the previous day.

More Storj News
XRP declines below $2.72 key level as Elon Musk's DOGE to begin SEC examination

XRP declines below $2.72 key level as Elon Musk's DOGE to begin SEC examination

Ripple's XRP saw a 4% decline in the early Asian session on Tuesday following an announcement that the Department of Government Efficiency is targeting the Securities and Exchange Commission (SEC) as the next agency to face its examination process.

More Ripple News
FTX repayments stir mixed feelings among investors, sending Bitcoin and Solana down

FTX repayments stir mixed feelings among investors, sending Bitcoin and Solana down

Bitcoin (BTC) and Solana (SOL) experienced declines on Monday as defunct crypto exchange FTX will begin redistributing tokens owed to creditors from its collapse in 2022, starting with those who held $50,000 or less.

More Cryptocurrencies News
Toncoin Price Analysis: TON nears $4 as LTC and DOGE ETF hype lifts PoW sector

Toncoin Price Analysis: TON nears $4 as LTC and DOGE ETF hype lifts PoW sector

Toncoin price has consolidated within the 2% tight range between $3.8 - $4 over the last 12 days.

More Toncoin News
Bitcoin: BTC consolidates before a big move

Bitcoin: BTC consolidates before a big move

Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP