Chainlink’s native token LINK saw a massive price surge this weekend, jumping over 21% in just 12 hours. This explosive rally allowed LINK to break past the 15-month resistance zone between $7.69 to $7.85 that it had been stuck under.
Keypoints
- Chainlink price surged over 21% in 12 hours, breaking past the 15-month resistance level between $7.69 to $7.85. This caught many investors by surprise.
- The rally propelled LINK above the $10 price level, reaching a new multi-week high of $10.99. The next major resistances are at $11.20 and $12.00.
- In the last 4 hours, around $3.78 million worth of futures positions were liquidated, with $3.38 million belonging to bears/shorts.
- Chainlink saw increased network activity over the weekend, with whale transactions, active addresses and trading volume reaching 3-month highs on Saturday.
- LINK price broke out of a consolidation wedge spanning over 1 year. A close above $8.2 weekly may take the price up to $12.54 as projected by one analyst.
The crypto market was caught off guard as LINK shot upwards, breaking above the $10 price level to hit a new multi-week high of $10.99. This marks a notable recovery for Chainlink which had been trading sideways for over a year.
Data shows that LINK’s pump liquidated nearly $3.78 million worth of futures positions, with shorts accounting for over $3.38 million of that. This points to the rally inflicting pain on bearish traders who were overpowered by the sudden buying pressure.
According to on-chain analytics platform Santiment, Chainlink saw a significant uptick in network activity over the weekend. On Saturday, October 22nd specifically, LINK registered more than 220 whale transactions above $100,000. The number of unique addresses interacting with LINK also jumped to nearly 5,000.
Overall, Chainlink recorded over 800 million in trading volume on Saturday – hitting 3-month highs across multiple metrics like whale transactions, active addresses and volume. This suggests that increased on-chain activity, potentially led by accumulation by whales and investors, catalyzed LINK’s price breakout.
The path of least resistance seems to be upwards for LINK after breaking its long-term consolidation pattern. One analyst noted that closing above $8.2 weekly could trigger a rally towards $12.54 next. Further overhead resistances lie at $11.20 and the psychological $12 level.
As long as bullish momentum sustains, Chainlink looks poised to build on these multi-month highs. But its price evolution will likely depend on broader recovery in the crypto markets.
