LINK could drop to nearly $4 by December 2022 given its failure to close above a key resistance level despite strong whale accumulation. LINK plunged by as much as 10% into the day to reach $8, while BTC and ETH slipped by approximately 6.5% and 9%. That contrasts with the trend witnessed on Nov. 7 wherein LINK rallied 14% to $9.25, its three-month high, while BTC and ETH dropped 1.5% and 0.5%, respectively. Overall, on a week-to-date timeframe, LINK has outperformed both Bitcoin and Ether.
LINK’s price has rebounded by nearly 75% after bottoming out at $5.29 in May. Notably, the Chainlink token’s recovery rally has coincided with a persistent increase in the supply held by its whales (entities that hold at least 1,000 LINK). The LINK supply percentage held by addresses with a balance between 1,000 LINK and 1 million LINK has risen to nearly 23% in November from 18.2% in May, according to Santiment data. This indicates that rich investors may have been the key players behind the LINK price recovery.
Interestingly, the LINK accumulation trend is rising in the days leading up to the launch of “Chainlink Staking.” Chainlink co-founder Sergey Nazarov announced at SmartCon 2022 that the long-awaited LINK staking reward function would go live in December. In addition, the project’s official website confirms that it will enable “eligible community members” to stake LINK into its pool in December.
The LINK staking service will be opened for the public in the same month, with the initial annual percentage yield set at 5%. The event has started drawing speculations about increased demand for the Chainlink tokens by the end of 2022. LINK appears to have benefited in the short term due to the euphoria around the Chainlink Staking function, given that other coins have tumbled in unison in response to the crypto hedge fund Alameda Research’s insolvency rumors.
From a technical perspective, LINK’s recovery rally since May has been confined inside an ascending triangle range. Ascending triangles are continuation patterns, meaning they typically send the price in the direction of its previous trend after a consolidation period. LINK was trending downward before it formed its ascending triangle.
The likelihood of the token continuing its downtrend and reaching its profit target stands at 44%, per the observation of ascending triangles by veteran investor Thomas Bulkowski. The profit target is measured after adding the maximum triangle height to its breakdown point, as illustrated below.
That puts LINK en route to around $4.15 by December 2022, down about 50% from Nov. 8’s price. Conversely, independent market analyst Pentoshi anticipates LINK to reach $12 in the same period, given that the token has been floating above the same support that was instrumental in sending its price to a record high in May 2021.
“While people are quiet on it now. I don't think that will be the case 3-4 weeks from now,” Pentoshi said.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 86% | 13 | $61 256.91 | -2.45% | -3.36% | $1 206 654 990 412 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 82.4% | 22 | $2 884.14 | -2.06% | -4.65% | $346 433 690 018 | ||
3 | USDT | Tether predictions | 95.6% | 1 | $0.999466 | -0.04% | -0.05% | $110 787 682 362 | ||
4 | BNB | Binance Coin predictions | 85.2% | 15 | $564.93 | -4.63% | -2.87% | $83 376 783 360 | ||
5 | SOL | Solana predictions | 82.4% | 28 | $142.94 | -2.86% | -4.79% | $64 130 214 021 | ||
6 | USDC | USD Coin predictions | 96% | 1 | $0.999951 | -0.01% | 0% | $32 878 597 373 | ||
7 | XRP | XRP predictions | 86.8% | 14 | $0.503621 | -0.72% | -7.09% | $27 880 050 303 | ||
8 | TON | Toncoin predictions | 70.4% | 62 | $6.92 | 0.01% | 22.75% | $24 053 328 828 | ||
9 | DOGE | Dogecoin predictions | 79.2% | 34 | $0.145406 | -2.04% | -3.18% | $20 981 023 615 | ||
10 | ADA | Cardano predictions | 89.2% | 19 | $0.429275 | -1.45% | -2.93% | $15 312 598 165 | ||
11 | SHIB | SHIBA INU predictions | 73.6% | 45 | $0.000023 | -0.88% | -0.79% | $13 565 423 408 | ||
12 | AVAX | Avalanche predictions | 79.2% | 34 | $31.58 | -2.56% | -10.68% | $12 061 257 431 | ||
13 | TRX | TRON predictions | 77.2% | 40 | $0.125427 | -0.04% | 3.49% | $10 970 944 300 | ||
14 | WTRX | Wrapped TRON predictions | 74.4% | 42 | $0.125302 | -0.57% | 3.71% | $10 959 940 561 | ||
15 | STETH | Lido stETH predictions | 93.2% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |
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