Chainlink’s native cryptocurrency LINK could be the next candidate for a major upward move. It was among the most popular cryptocurrencies at the time of publication and its price action may be heading towards a breakout of the pattern.
LINK was able to overcome the bearish doubt in the first half of the week in favor of a strong bullish push since September 7.
The variant is up nearly 20% over the past three days, confirming the return of strong demand. However, the rally led to another break of the six-month support level and a break may be imminent.
The breakout could herald the start of a new uptrend. A welcome relief for LINK investors given that LINK has benefited from the downside over the past five months. Its price level at $7.81 is still a slight discount compared to a two-month high of $9.48.
LINK’s continued bullish attempt is backed by a stronger build-up compared to its previous attempts in July and August. This is reflected in the Money Flow Index (MFI) which indicates a significant build-up since the last week of August.
The surge in social volume confirms LINK’s upside, especially due to the hype surrounding the upcoming conference. The event called Smartcon will be held at the end of September. It will include presentations from the Chainlink team.
More notes on the side of the series reveal an increase in daily active titles. This in addition to the rise in the number of options transactions confirms the demand wave responsible for the ongoing upward trend.
Can LINK maintain the current elevation?
LINK is currently on the way to recovery but there is still some uncertainty in the short term. The shift in sentiment caused by expectations of more downside for risky assets halted the Link’s rally in the first half of August. Such an outcome could still occur again in the next three weeks.
On the other hand, LINK managed to rally despite some selling pressure from some whales. Whales with between 1 and 10 million LINKs have reduced their holdings over the past couple of days, and are likely to turn a profit.
Other whale categories including whales with over 10 million added on the continual rise. Investors should pay attention to the unanimous conclusion where all the whales pile up. Such a result will validate expectations for an extended bullish performance in the near term.