Chainlink (LINK) price is showing strength despite technical warnings

Chainlink price (LINK) has emerged as one of the biggest gainers among the top 20 cryptocurrencies in the last 24 hours despite its technical indicators showing mixed signals.

Although the BBTrend indicator has remained positive since November 25th, it has weakened significantly. Despite these conflicting signals, LINK price shows potential for a 42% increase to $30 if it successfully breaks current resistance levels.

Chainlink whales are not accumulating LINK

A significant decline in Chainlink whale holdings over the past two weeks suggests a possible shift in sentiment.

The number of wallets holding 100,000 to 1,000,000 LINK fell from a yearly high of 558 on November 19 to currently 533, suggesting that large investors may be taking profits or redistributing their holdings.

It is crucial to track the behavior of whales as these large holders can significantly influence price movements and market sentiment. The drop from 558 to 533 wallets in this category indicates a distribution phase in which larger holders reduce their positions.

This continued decline in whale stocks could signal bearish pressure on LINK price in the short term.

LINK BBTrend Is at its lowest level in weeks

The Chainlink BBTrend (Bollinger Bands Trend) indicator has weakened significantly, falling from its peak of 18.2 on November 26th to just 0.44 currently, while remaining in positive territory since November 25th.

The BBTrend helps identify the strength of a trend and potential reversals by measuring price movement relative to the Bollinger Bands.

A possible shift into negative BBTrend territory could signal a trend reversal and increased selling pressure for LINK.

When BBTrend turns negative, it typically indicates a price move below the middle Bollinger band, indicating bearish momentum that could lead to further downward movement in LINK price.

LINK Price Prediction: A Potential New Rise of 42%

LINK’s recent attempt to break $22, a level not seen since 2022, suggests potential for a significant move higher.

Should the next attempt be successful, the cryptocurrency could aim for a target of $25 before rising towards $30, which would represent its highest value since 2021 and represent a significant price increase of 42% from current levels.

Conversely, a downward correction could occur if the upward momentum is not maintained.

In this scenario, LINK price could test the initial support at $16.18, with the possibility of a further decline to $13.8 if this support level is not held.