Amidst crypto market fluctuations, institutional wallets stealthily accumulated LINK for five consecutive months. This discreet accumulation phase has unveiled a long-awaited technical signal for seasoned traders. The burning question now: how soon until Chainlink breaks the psychological barrier of $20?
Analysis of token flows to institutional wallets shows a clear and consistent trend. Addresses holding more than 1 million Chainlink have steadily increased their positions, absorbing selling pressure without triggering an artificial pump. This discreet accumulation strategy is typical of smart money looking to build significant positions without prematurely driving up prices.
On-chain metrics also confirm a significant reduction in the amount of Chainlink available on centralized exchanges. This phenomenon indicates that holders prefer cold wallet storage or utilization within the DeFi ecosystem rather than quick sales. The active circulating supply is decreasing, mechanically creating potential upward pressure as demand accelerates.
The ratio between high-value transactions and total exchange volume has also shifted in recent months. Movements exceeding $100,000 now represent a growing share of on-chain activity, confirming institutional interest. This technical configuration resembles the accumulation phases observed before previous LINK bull rallies.
The $20 level represents a major psychological resistance that Chainlink has tested in the past. Trading volumes remain relatively modest during this accumulation phase, but a breakout above the current resistance could trigger a rapid acceleration toward this symbolic threshold. Traders are particularly monitoring the RSI behavior, which is gradually emerging from a prolonged oversold zone.
The order book structure also shows significant liquidity accumulation just above current price levels. This configuration suggests that potential sellers have already placed their orders, and once these levels are absorbed, resistance will decrease significantly. Momentum could then accelerate rapidly if buying volume increases.
From a purely technical perspective, Chainlink is currently evolving in a narrow consolidation zone after testing a solid support multiple times. This volatility compression is accompanied by tightening Bollinger Bands and converging moving averages, two signals that typically precede marked directional movements.
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