After gaining 38% in the first quarter, Chainlink (LINK) consolidated its current rally with another 15% price increase in April. On-chain data reveals how big crypto whales have been betting on LINK in the past week. Can the bulls make a push towards $10?
Chainlink (LINK) is a decentralized oracle network that allows blockchain networks and smart contract platforms to integrate off-chain data into their products.
Compared to the 50% growth in global cryptocurrency market capitalization, Chainlink delivered a comparatively lower performance in the first quarter. However, recent on-chain developments indicate that Chainlink’s team building efforts and partnership Guaranteed in Q1 now yield results.
Crypto whales are betting heavily on Chainlink
Crypto whales have ramped up investment activity on the Chainlink network in the last 10 trading days. According to Santiment, there has been a 400% spike in large transactions involving LINK in the past week.
The chart below shows how LINK Whale activity increased from 33 transactions on April 10 to 165 as of April 18.
The Whale Transaction Count tracks the number of daily large cryptocurrency trades of $100,000 or more. Large institutional investors are considered influential and knowledgeable about the market. Hence, such a rise in Whale’s transaction count could inspire bullish sentiment among new entrants and other existing LINK investors.
Moreover, the recent spike in new users on the Chainlink network also validates the bullish narrative. According to data compiled by Glassnode, the Chainlink network grew by 57%, from 475 new wallet addresses created on April 9 to 747 on April 16.
Network growth measures the number of new users joining the blockchain network. When it increases during a price hike, it means that the price increase is being driven by strong fundamentals and increased demand rather than by speculative traders. Moreover, this increased demand could form a higher support level for LINK price when a bounce occurs.
In short, an occasional rise in whale activity and network growth means that LINK is likely to maintain its price momentum for the time being.
Price Prediction Connect: The Path to $10
IntotheBlock’s Global In/Out of the Money data indicates that LINK could ride the current price rally towards a new one-year peak of $10.
The chart below shows that LINK may face some lower resistance until it breaks out of the $10 area. But taking profits from 44,000 addresses that bought 44 million LINKs at an average price of $10.34 could prevent that.
If Chainlink can break this resistance, the rally could gain enough momentum to reach $15. However, at that point, the 61,000 addresses that paid an average of $13.76 to get 18 million links could be another roadblock.
However, the bears could steal the rally from the bulls if Chainlink price loses its current support at $8. But, the 7,000 titles that bought 25 million tokens here can look forward to blocking the drop.
Failure to hold this support level could send LINK price down to $6.75. Here, the price is likely to support a more significant support than the 68,000 addresses containing 427 million coins.
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