Chainlink Holds Strong Amid Bitcoin’s Drop After CPI Inflation Data

Chainlink Holds Strong Amid Bitcoin’s Drop After CPI Inflation Data

On October 10, despite a 1.2% drop in the broader crypto market following higher-than-expected CPI inflation data, Chainlink (LINK) managed to hold steady. While LINK remained stable against USDT, it actually gained 0.2% against Bitcoin (BTC), suggesting resilience. Notably, whale activity around LINK surged, signaling that large holders might be accumulating the token. Could this be the right time to buy LINK before its price potentially skyrockets?

At the same time, Ronin, an EVM-compatible blockchain designed for gaming, has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enhance its bridge security. This integration is part of Ronin’s strategy to accelerate adoption while increasing demand for LINK tokens, as customers pay for these services in LINK, driving further market demand. This could be the catalyst for a LINK price surge.

Whale Accumulation: Will It Ignite a Chainlink Rally?

Data from Santiment shows that whales have been steadily accumulating LINK following the recent price correction. Whale accumulation often signals confidence in an asset’s future value, which tends to drive demand and push prices higher. Between October 1 and 8, the number of large LINK holders increased from 489 to 502, indicating that whales are returning to the market.

Further data from IntoTheBlock confirms an increase in whale net inflow since October 8, suggesting that these big players are actively buying more LINK. Additionally, the 7-day MVRV ratio, which measures the average profit or loss of holders, dropped from 8.12% to -4.41% over the last two weeks. This suggests that more LINK holders are now at a loss, potentially influencing behavior towards long-term holding rather than selling.

Supporting this trend is a steady increase in LINK withdrawals from exchanges since September 15, according to Coinglass data. This outflow is often viewed as a bullish signal, indicating that investors anticipate a price rise and prefer to hold LINK in private wallets rather than leaving it on exchanges.

Recent price action further supports the bullish case for LINK, with predictions of a potential 19% surge. Although LINK is down 0.3% over the last 24 hours, it remains priced at $10.61, close to key support levels.

LINK Price Outlook: Bullish Setup Indicates 26% Breakout to $16

Chainlink is currently in a bullish setup, showing signs of an ascending triangle pattern driven by accumulation and growing momentum. The $12.50 – $13.00 resistance zone remains a critical barrier. This level has been tested several times, and a break above it could trigger a significant rally.

Upon successfully breaking through the $13.00 resistance, LINK could see two potential price targets. The first target indicates a 19.84% increase, pushing the price to $13.80, while the second points to a 26.64% gain, reaching as high as $16.00.

On the downside, $10.00 serves as a strong support level, aligned with an ascending trendline. If LINK falls below this point, the current bullish setup would be invalidated. With the price hovering at $10.64, this presents a potential low-risk buying opportunity if the trendline holds.

The accumulation of LINK by whales strengthens the case for a bullish trend. A breakout above $13.00 could confirm a larger rally, potentially pushing the price beyond $16.00. If LINK consolidates above this level, it might signal the start of a new bull cycle, with the potential to test even higher resistance levels as we head into 2025.