Chainlink (LINK) Price Prediction: Uptrend is Certain If Demand Remains

LINK, the native token of the leading decentralized oracle network Chainlink, has noted a 5% price surge over the past 24 hours. It currently trades at $11.76, with a 2% hike in trading volume during that period.

Chainlink (LINK) price showed signs of preparing for a double-digit rally as on-chain metrics signaled increasing demand for the altcoin.

LINK’s Exchange Netflow highlighted a consistent trend of negative flows over the past 30 days, indicating that more tokens were leaving cryptocurrency exchanges than entering them. On Thursday, the trading session ended with 667,290 LINK being moved out of exchanges.

An asset’s Exchange Netflow measures the net amount of its tokens flowing into or out of exchanges. Negative netflows occur when more tokens are leaving exchanges than entering them, suggesting that holders are moving their holdings off exchanges.

Such a trend typically signals accumulation by holders. When holders withdraw assets from exchanges, they often transfer them to cold storage or private wallets for long-term holding. This is a bullish signal for the market as it reduces the token’s availability for short-term trading, improving its price action.

Chainlink’s large investors, or whale addresses, have also been increasing their holdings, supporting the bullish outlook.

According to BeInCrypto’s analysis of LINK’s supply distribution, whale addresses holding between 10,000 and 1,000,000 LINK have accumulated 11 million tokens in just 30 days — an investment of over $130 million at current market prices. This group of holders now collectively holds 221 million LINK tokens, marking their highest balance since December 2017.

The uptick in whale accumulation is a bullish signal because it reduces LINK’s available supply, signals confidence, and can also prompt retail investors to buy, all of which can contribute to a price increase.

LINK’s price is currently trading at $11.76, having rebounded from support at $11.24. Growing demand for the altcoin, highlighted by an increasing Relative Strength Index (RSI), is pushing it toward resistance at $13.73.

RSI, now at 55 and rising, indicates that buying interest is outweighing selling pressure, signaling bullish momentum. A successful breakout above this resistance could set LINK on a path to a target of $15.47.

However, should demand weaken and LINK fail to beat resistance, it may trend downward to retest support at $11.24. If this level does not hold, Chainlink’s price could fall further to $9.98.