Chainlink’s falling wedge has featured on the chart since late January, outlining a steady decrease in value for the world’s 23rd largest cryptocurrency. Entering the final consolidation stage, bulls are preparing to bust the wedge wide open and retake the market from bears’ grip. Their efforts would certainly be buoyed by whales who are have been accumulating LINK tokens constantly since 27 February. At the time of writing, LINK traded at $13, up by 1.3% over the last 24 hours.
Chainlink Daily Chart
Chainlink’s price has traversed within a falling wedge since 21 January, forming a chain of lower lows and even steeper lower highs. In technical analysis, falling wedges emerge after a bearish trend but contain high chances of an upside breakout. The final consolidation stage draws closer once the two trendlines begin to converge.
In LINK’s case, it’s possible that the wedge could extend lower to reliable support before a breakout occurs. Ideally, $12.44 or $11.4 support levels were LINK’s best chances to attempt a breakout.
Once the candles close above the upper trendline, earlier swing highs become the price targets. For LINK, the first point of contact would be made at $14.6, followed by $15.9, $17.4, and finally, $19.5. A pickup till the last target would highlight a 70% surge from $11.4.
Chainlink Integration Spikes in Feb
Meanwhile, data integration has been a key factor in building wealth for the Chainlink project and a spike in data feeds’ usage indicated that it was on the right track. Chainlink’s official Twitter handle showed that data feeds’ usage climbed by 6,000% in February 2022 from a year ago. Dozens of popular platforms use the Chainlink data feed to connect their smart contracts to live market prices. Blockchains including Ethereum, Solana, Fantom, and Avalanche all use Chainlink’s price feeds to secure their networks with accurate data.
Chainlink Whales Back At It
Data compiler Santiment also revealed that whales holding between $10K-$10 Million worth of LINK tokens have been accumulating aggressively over the past two weeks. An interesting correlation showed that the LINK purchases were being at a time when BTC was shifting between the $45K-$37K zone in a possible bear market.
Price Strategy
Whale purchases and an expanding ecosystem have definitely set the stage for a LINK rally. Investors can maximize its potential run by setting up long orders at $14.45. Take-profit can be set moderately at the second target of $15.9. Stop-loss can be maintained below $10.4. The trade setup carries a 4.2 risk/reward ratio.