Can Chainlink Reach $40? Analyzing Whale Accumulation and Institutional Adoption

Chainlink's price recently surged by over 50%, driven by increased whale accumulation and a growing number of institutions adopting its ecosystem.

Key Takeaways

Chainlink's price jumped to a 7-month high of $24.28, reflecting a 50% weekly gain and 123% rise from its yearly low.
Whale wallets have accumulated 8.5% more LINK tokens over the past week, indicating strong support among significant investors.
Major financial institutions are integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with the SWIFT banking network.
A double-bottom pattern and an ascending broadening wedge indicate potential bullish movements for Chainlink’s price.

Chainlink’s price has experienced a remarkable increase, rallying over 50% in just a week due to intensified whale buying and rising institutional interest in its services.

Recent data from crypto.news reveals that Chainlink hit a 7-month high of $24.28 on Wednesday, August 13, during morning trading hours in Asia. The asset's price surge has resulted in a weekly gain exceeding 50% and a total rise of 123% from its lowest point this year, pushing its market capitalization over $16.4 billion.

The strong price performance can be attributed to several key factors, including ongoing accumulation by whale investors. According to data from Nansen, the amount of LINK tokens held by whale wallets has increased by 8.5% in the past week. These wallets now control 4.65 million tokens, up from 4.29 million on August 6, and significantly higher than the 3.42 million in mid-May.

Typically, whale accumulation is viewed as a positive indicator by retail investors, who may mimic these big investors when building their portfolios. If this trend continues, it could further boost the asset's price, particularly if strong market sentiment and positive developments continue.

One significant advancement is the adoption of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) by various financial institutions. A recent blog post from Chainlink highlighted its integration with SWIFT, an international banking messaging service utilized by over 11,500 institutions. This collaboration allows banks to directly connect to blockchains while using their existing SWIFT messaging standards, streamlining interoperability and settlement processes.

The trials conducted involved more than a dozen prominent institutions, including Euroclear, Clearstream, ANZ, Citi, BNY Mellon, BNP Paribas, Lloyds Banking Group, and SIX Digital Exchange (SDX).

Another exciting development is Chainlink's partnership with the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. This collaboration aims to provide real-time on-chain pricing feeds for foreign exchange and precious metals.

In terms of technical analysis, Chainlink has formed a multi-month ascending broadening wedge pattern. This formation consists of two upward-diverging trend lines that suggest an increase in price volatility over time. Recently, LINK confirmed a double-bottom pattern, with the two bottoms occurring at $10.9 and a neckline positioned at $18. Historically, breaking above this neckline indicates a bullish reversal, hinting at the possibility of further price appreciation.

The 50-day moving average is currently above the 200-day moving average, signaling a bullish trend in the medium to long term. While an ascending broadening wedge is typically associated with bearish signals, LINK's price is trending towards the upper trend line near $40, which is approximately 65% higher than its current level.

Some analysts see the potential for Chainlink to reach $46 in the coming weeks, provided that trading activity remains robust and demand continues to drive the rally.

Disclosure: This article is for informational purposes only and does not constitute investment advice.

Can Chainlink reach $40? Analyzing Whale Accumulation and Institutional Adoption