According to crypto analyst Yashu Gola, LINK is approaching an ascending triangle breakout scenario in December. Additionally, the analyst says that on-chain bullish indicators strengthen the upside case for the altcoin. In this context, the analyst gives 3 reasons for LINK’s run.
Altcoin price is approaching a breakout of the ascending triangle
LINK price has recovered over 240% from its yearly low of around $4.70 in June 2023. The altcoin has been consolidating in what appears to be an ascending triangle formation since November 2023. Ascending triangles are bullish continuation patterns when formed during a bull trend. They resolve when the price rises above the upper trend line and rises by the maximum distance between the upper and lower trend lines.
It looks like LINK is looking at a similar breakout scenario in December 2023. Moreover, it is currently trading around the upper trend line of the triangle near $16. Let’s assume it rises decisively above the resistance level in question. At that time, the triangle breakout target for the altcoin would be above $19.50. This would mean a 20% increase from current price levels.
LINK daily price chart. Source: TradingViewLINK supply on exchanges decreased
There are more clues about Chainlink’s potential 20% upside in December 2023. One of these comes from data tracking the LINK supply on crypto exchanges. You can see this from the red wave in the chart below. As of December 3, there were approximately 150.39 million LINK on crypto exchanges, the lowest level since February 2020. This marks a 19% decline compared to the 2023 peak of 185.71 million LINK in August. This was also accompanied by a 150% increase in the altcoin value.
LINK supply on all crypto exchanges etc. price. Source: SantimentThe decrease in supply on exchanges indicates that investors prefer to hold LINK rather than sell it. Therefore, if demand does not decrease, the potential for LINK to continue its 2023 bull run increases.
LINK collects whales
According to data tracked by Santiment, strong demand for LINK continues among the richest addresses. As we reported as Kriptokoin.com, the top 200 whale addresses of the altcoin project have accumulated $50 million worth of LINK since the beginning of November.
Chainlink top 200 whale conglomerate. Source: SantimentThis coincides with a 50% increase in LINK’s market valuation. It also shows that whales are accumulating the token at its highest levels. Simply put, LINK whales are betting that the altcoin’s value will rise even further by the New Year.
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