In the last few weeks, Chainlink has gained new traction in the market, with investors flocking to buy this token. Even Donald Trump’s crypto project spent significant money on it. And now the demand may grow even higher as the Chainlink price moves towards new ATH. But first, here’s why it can achieve $32 next.
Top 5 Reasons Why Chainlink Price Might Hit $32
Chainlink is among the top cryptos, with a market capitalization of $14.8B. More importantly, it is currently valued at $23.18 after a 4% surge in the last 24 hours. However, this is nothing compared to its early rally to $30, which went short with the drop in Bitcoin price. However, things are taking a turn, with multiple factors favoring the Chainlink price rally to $32.
1. Whales Buying The LINK Price Dip
The recent crypto market crash heavily influenced the Chainlink, which resulted in the LINK price dropping to a low of $20. However, the whales turned that into buy-the-dip opportunities, where more than $40M LINK tokens were bought by the whales. In general, such massive whale buying represents the token’s heavy profit potential, which is why whales went on an accumulation journey.
2. Increased Trading Volume
Along with the whales, the investor’s interest has also increased in the network as in the 24-hour timeframe, the trading volume has increased from $838M to $951M. However, there were significant fluctuations in between. Despite that, the TV’s growth is significant enough to contribute to the LINK price recovery.
The increased demand also becomes clear with the increased active address and transaction count over the days. Overall, this is a significant indication of the rising on-chain movement and the rising interest among investors.
3. Technical Indicators Indicate Bullishness
The token’s price charts display the token near the crucial resistance of $22.27, stopping any further downtrend. A significant jump from this point can push the token to a new high. More importantly, the Chainlink token is an ascending channel, where the LINK price is likely to make higher highs and lower lows.
Crypto analysts’ Chainlink price prediction sees movement towards $26.20, $30, and $38 once the token tests the resistance zone around $32–$38 multiple times.
4. Decline Exchange Reserve
With the crypto whale withdrawing assets from the crypto exchanges, the token’s exchange reserve has dropped. According to crypto quant data, in the last 24 hours, the exchange reserve has dropped to 161.5M, which is an indication of selling pressure settling with the investors focusing on holding rather than selling.
This indication and the rest of the factors confirm the bullishness of the Chainlink, which could propel the price to $32.
5. Blackrock-Chainlink Partnership To Boost Chainlink Price
With World Liberty Financial buying of Chainlink tokens, the possibility of a Blackrock-Chainlink partnership has opened up, according to industry experts. Over the years, the decentralized Oracle network has entered into multiple partnerships, and the one with Blockrock is currently in rumors. If that happened, it could propel the LINK price to new highs, as Blackrock is one of the biggest asset managers with assets worth $11.5M.
Final Thoughts
Despite the global crypto investor’s sentiments dropping, many indicators hint at a further Chainlink price rally. In this, the biggest factors favoring further growth are constant whale buying and increasing trading activity for the token. Additionally, the technical charts present the token near the support, which restricts further decline. Meanwhile, the ascending channel is likely to continue with higher highs and high lows, favoring the bullish momentum. If all the factors come together, the LINK price could hit $32 in the future. However, the bears can take over temporarily with the decreasing bullish sentiments of users.
The post Top 5 Reasons Why Chainlink Price Could Hit $32 Next? appeared first on CoinGape.
