In the past 48 hours, the "whales" have aggressively accumulated an additional 1.25 million Chainlink (LINK), reflecting a fierce accumulation trend while the market is active.
Alongside that, the Exchange Netflows data recorded a net outflow of 1.84 million USD from exchanges, indicating that the available tokens in the market are becoming increasingly scarce. This move reinforces the belief that large investors are adopting a strategy to reduce circulating supply in preparation for a long-term scenario.
At the time of writing, LINK is trading around 23.44 USD, holding steady above an important Fibonacci level. With supply being tightened by whale accumulation activities, the potential for a significant "short squeeze" is gradually forming.
LINK forms a "round bottom" bullish pattern
The weekly chart of Chainlink is painting a picture of a rounded bottom pattern, suggesting a phase of persistent accumulation before entering a new growth cycle.
Currently, this altcoin has broken through the Fibonacci extension level at 23.69 USD and is challenging the key resistance zone of 28–32 USD. If buying pressure is strong enough to break through this zone, LINK could extend its rally, targeting important levels at 31.57 USD, 39.45 USD, and even 44.32 USD according to the Fib levels.
The positive signal is further reinforced by the MACD indicator, as the MACD line remains above the signal line, while the histogram continues to record positive momentum.
On the contrary, if the price cannot hold above the 23 USD threshold, LINK may have to revisit the support area of 18.82 USD.
LINK/USDT weekly chart | Source: TradingView## Spot trading heats up
The Spot volume bubble map shows that trading flows are widening, with a significant increase in volume, reflecting the growing intensity of market participation.
The vibrant atmosphere in the spot market is often a signal to reinforce confidence, not only from individual investors but also from large institutions.
The current surge indicates that the bulls are actively accumulating, while the bears remain cautious.
However, the surge in volume often accompanies breakthroughs in structure: it not only supports the upward trend but also harbors the potential for unexpected volatility, making the upcoming trading sessions unpredictable.
Source: CryptoQuant## Potential short squeeze
Liquidation data shows that pressure is heavily mounting on the Short side, with over $180,000 being wiped out in just a few hours, while the figure from Long positions is only around $14,000.
This large discrepancy exposes the clear weakness of the bears, especially when LINK still holds above the 23 USD mark. Typically, the stronger the short-squeeze wave, the more forced buying pushes the price farther, creating a magnifying effect on the upward momentum.
If the bullish sentiment continues to spread, the bears risk being "forced to lower prices" further, opening up opportunities for a new breakout. However, a solid accumulation phase is still necessary to avoid the "bull trap" scenario that deceives investors.
Source: CoinGlass## Conclusion
The strong accumulation from whales, a decline in supply on the exchange, and an explosion in spot trading volume along with a wave of Short position liquidations have created an optimistic picture for Chainlink.
The technical signals also agree with this trend, indicating that LINK may reach the price range of 31-40 USD if it maintains the current upward momentum.
Nevertheless, the resistance zone at the supply area remains an important challenge. If the buying force is strong enough to break through, the opportunity to establish a new price peak for LINK will become clearer than ever.
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Chainlink (LINK) shows clear bullish signals, with a target of 31 USD in sight.
In the past 48 hours, the "whales" have aggressively accumulated an additional 1.25 million Chainlink (LINK), reflecting a fierce accumulation trend while the market is active.
Alongside that, the Exchange Netflows data recorded a net outflow of 1.84 million USD from exchanges, indicating that the available tokens in the market are becoming increasingly scarce. This move reinforces the belief that large investors are adopting a strategy to reduce circulating supply in preparation for a long-term scenario.
At the time of writing, LINK is trading around 23.44 USD, holding steady above an important Fibonacci level. With supply being tightened by whale accumulation activities, the potential for a significant "short squeeze" is gradually forming.
LINK forms a "round bottom" bullish pattern
The weekly chart of Chainlink is painting a picture of a rounded bottom pattern, suggesting a phase of persistent accumulation before entering a new growth cycle.
Currently, this altcoin has broken through the Fibonacci extension level at 23.69 USD and is challenging the key resistance zone of 28–32 USD. If buying pressure is strong enough to break through this zone, LINK could extend its rally, targeting important levels at 31.57 USD, 39.45 USD, and even 44.32 USD according to the Fib levels.
The positive signal is further reinforced by the MACD indicator, as the MACD line remains above the signal line, while the histogram continues to record positive momentum.
On the contrary, if the price cannot hold above the 23 USD threshold, LINK may have to revisit the support area of 18.82 USD.
The Spot volume bubble map shows that trading flows are widening, with a significant increase in volume, reflecting the growing intensity of market participation.
The vibrant atmosphere in the spot market is often a signal to reinforce confidence, not only from individual investors but also from large institutions.
The current surge indicates that the bulls are actively accumulating, while the bears remain cautious.
However, the surge in volume often accompanies breakthroughs in structure: it not only supports the upward trend but also harbors the potential for unexpected volatility, making the upcoming trading sessions unpredictable.
Liquidation data shows that pressure is heavily mounting on the Short side, with over $180,000 being wiped out in just a few hours, while the figure from Long positions is only around $14,000.
This large discrepancy exposes the clear weakness of the bears, especially when LINK still holds above the 23 USD mark. Typically, the stronger the short-squeeze wave, the more forced buying pushes the price farther, creating a magnifying effect on the upward momentum.
If the bullish sentiment continues to spread, the bears risk being "forced to lower prices" further, opening up opportunities for a new breakout. However, a solid accumulation phase is still necessary to avoid the "bull trap" scenario that deceives investors.
The strong accumulation from whales, a decline in supply on the exchange, and an explosion in spot trading volume along with a wave of Short position liquidations have created an optimistic picture for Chainlink.
The technical signals also agree with this trend, indicating that LINK may reach the price range of 31-40 USD if it maintains the current upward momentum.
Nevertheless, the resistance zone at the supply area remains an important challenge. If the buying force is strong enough to break through, the opportunity to establish a new price peak for LINK will become clearer than ever.
SN_Nour