August 22 Chainlink Price Analysis: LINK Defies Bearish Trends, Targets $15.50 Amid Whale Accumulation

August 22 Chainlink Price Analysis

In a surprising turn of events, Chainlink (LINK) has managed to defy a bearish pattern that threatened to drag its price down to approximately $5.00. Instead, buoyed by a surge in whale activity, LINK has risen by 9.5% within the last 24 hours. Traders are also turning bullish, seizing the opportunity to buy into the asset with expectations of further price increases. As a result, $1.22 billion worth of LINK currently sits at the money, poised to slip into profit if the market maintains its bullish sentiment.

Whales and Traders Propel Chainlink Price Upwards

Recent data from Coinglass and Santiment suggests that both whales and traders are playing significant roles in pushing Chainlink’s price higher. The number of LINK tokens in profit has surpassed its monthly high, indicating that many investors are now seeing returns on their investments.

Moreover, according to IntoTheBlock’s Global In and Out of Money (GIOM) analysis, over $1.35 billion worth of Chainlink could enter the profit zone if the token’s bullish momentum continues. This figure represents 10.79% of the total LINK tokens in circulation.

The Market Value to Realized Value (MVRV) ratio has also shown a marked increase, rising from 0.24% on August 18 to 12.16% today. This suggests a growing amount of unrealized profit, further corroborating the positive outlook indicated by the GIOM metric.

Santiment’s data further reveals that whale transaction activity has been on the rise since August 18, peaking on August 21 as LINK broke out of a symmetrical triangle, overcoming a previously bearish pattern. The combination of increased whale activity and rising prices suggests that large investors are actively accumulating LINK.

On the trading front, sentiment has turned bullish, with the Coinglass Crypto Derivatives Screener showing a reduction in short positions over the past 15 minutes, while long positions have increased over the past 24 hours. This indicates that short-term traders are closing their positions in profit and are now looking to capitalize on longer-term gains, anticipating that LINK’s price may continue to climb.

Looking ahead, some analysts predict that if the bullish sentiment persists, Chainlink could surge towards $15.00.

LINK Price Analysis: Poised for a Rally to $15.50

Recently, LINK managed to break out of a bear pennant, a pattern typically associated with continued downward movement. However, the breakout was accompanied by a strong bullish candlestick, indicating a potential shift towards an upward trend. The size of the candlestick suggests substantial buying pressure.

The first key resistance level for LINK appears to be around $11.97. A successful break above this threshold could signal the beginning of a bullish trend, with the next major resistance level at $13.97. Should the price clear this hurdle, it could aim for the previous highs of around $15.50.

The Coppock Curve, a technical indicator often used to identify potential market reversals, currently reads at 2.74, signaling a possible early-stage bullish reversal following a prolonged downtrend.

A daily close above $13.97 with strong volume could confirm a sustained breakout, setting the stage for further price appreciation towards $15.50 or beyond.

However, traders should remain cautious, as the $11.00 level serves as immediate support. A breakdown below this point could indicate underlying market weakness, potentially nullifying the bullish setup and leading to a reassessment of long positions.