Chainlink Accumulation by Whales Signals Potential Breakout Amid Growing Network Activity

Since touching a daily high of $24.74 on August 13, Chainlink’s (LINK) northward price movement has cooled, pushing the asset a few levels lower. Despite LINK’s upward trend stalling, large holders are still accumulating the coin. Generally, these whale buyers view this slip as a “buy the dip” window for a potential next leg higher. So, what are the current bets regarding LINK’s future trend?

Whale Activity and Rising User Engagement Drive Chainlink to Multi-Month Highs

On Thursday, large transactions exceeding $100,000 reached 992, its highest daily value in the past seven months. This growth in whale purchases helped push Chainlink’s price close to its previous trading day’s closing value.

In the current market session, about 232 high-value buys totalling over $100,000 have already been executed. Notably, this ongoing trend has been linked to the recent launch of a dedicated LINK reserve by the network. 

Interestingly, the number of daily active addresses trading on the Chainlink network is also on an upward trajectory, signaling increased user interaction. As per the latest Santiment report, active LINK addresses are pegged at 6,463—the highest in the past eight months. 

Bullish Sentiment Surges with Social Support and Network Growth

Alongside these on-chain trends, social sentiment about the LINK token also rallied. Further reports from Santiment revealed that the word “LINK” has trended on social media recently—primarily due to its association with Chainlink. This means that LINK supporters, also called “Chainlink marines”, are posting their strongest bullish calls since February 1. 

Adding to that, analyst Ali Martinez recently shared that investors have moved over 2 million Chainlink tokens between August 11 and 13. Withdrawals of such scale usually indicate that investors are transferring their holdings to cold storage, possibly anticipating an uptrend.

Meanwhile, Chainlink continues expanding on the market front with key advancements. Earlier this month, the network unveiled a new product, Data Streams, to enable crypto participants to interact with traditional markets.

LINK Eyes Breakout as Analysts Predict Surge Despite Key Support Risks

Chainlink is hovering at $21.59 after trading sideways over the past seven days. Still, the coin remains in the green zone on its monthly, 3-month, and 6-month charts. 

Here are other notable LINK trends:

• Chainlink has gained 111% in the past year.
• The asset has outperformed 79% of the top 100 cryptos, including Bitcoin and Ethereum.
• It has stayed above the 200-day moving average, signaling strength.
• LINK has logged 17 green days in the last 30 days (57%).
• Besides, the coin has maintained bullish sentiment with a Fear & Greed Index of 56 (Greed).

Even though LINK sits 59% below its all-time high of $52.89, experts believe that it could still touch higher price levels soon. 

Bitcoin maximalist CryptoGoos mentioned that LINK has formed a double-bottom setup and is poised for a northbound surge. Another crypto analyst, Miles Deutsche, suggested that Chainlink is probably the most obvious large-cap investment at the moment. Ali even set a price target of $29 and $46 for the asset.

Experts also cite the recent Consumer Price Index (CPI) drop as another driver of the Chainlink price momentum. A falling CPI typically signals easing inflation and lower rates, which often boosts liquidity and investor appetite towards risk assets like LINK. Still, analysts maintain that the coin could head south to $19.51 or lower if it breaches the support between $21.34 and $21.35.