- Chainlink might rally between $16.2 and $20.2 before the New Year’s.
- The exchange supply of LINK has dropped to its lowest level since February 2020, indicating strong investor sentiment.
- The 20-day EMA and RSI suggest that the current price action on LINK is bullish.
- There are currently no strong bearish signals on Chainlink.
- If the broader crypto market experiences a bullish phase before 2023 ends, Chainlink could reach the $20 target.
Chainlink may not appear to be all that much right now because of its relatively slow price action as of late.
However, cryptocurrency is one of the most promising on the market at the moment, and we might be able to catch one last pump before the year runs out.
Here’s why you should keep an eye out for $LINK.
LINK’s Raw Price Action
Before we get into any fancy charting and metrics, let’s explore Chainlink’s price chart.
We can pick out a few interesting things from here.
The first is that Chainlink is currently in a bullish pennant formation, as shown above.
The lower trendline of this formation is validated by the 20-day EMA and appears to be extra-fortified against any breakdowns.
In LINK’s case, this lower trendline currently sits around $14.8. This indicates that LINK is unlikely to go below this trendline.
We can also see above, in the magnified chart, that the RSI currently shows a level of 61, indicating that the bulls are in control.
Moreover, the RSI signal line is on the verge of a retest of the MACD. If a bearish crossover does not occur from here, LINK is expected to rebound somewhere off $15, and then take off further up.
In terms of price predictions, the Fibonacci retracement tool shows that bullish targets include 11 November’s $16.2 high, as well as a $20.2 high.
Seeing how close LINK is to rebounding off key levels, we can expect LINK to make this incoming 20% rally before New years’ eve, straight up to $20.2
Chainlink Supply on Exchanges Hits Lowest Levels
If the price analysis above wasn’t enough, Here are some real metrics.
According to data from Santiment, the whale transaction count (blue), as well as the total amount of LINK held on exchanges (yellow) has dropped to 150.39 million as of this week.
This is the lowest the exchange supply of LINK has been since February 2020 and represents about a 20% decrease from the peak of 185.71 million in August 2023, when LINK reached its all-time high of over $50.
This means that investors are no longer transferring their LINK to exchanges to be sold, but are rather HODLing in offline wallets and non-exchange storages.
What To Expect Next?
There are very few bearish indicators on LINK at the time of writing, judging by the behaviour of the whales, and its technical indicators.
Because of this, it is safe to assume that if the crypto market were to enter any last-minute bullish phases before 2023 runs out, Investors may celebrate New Year’s with a chainlink price that is at, or close to $20.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.