LINK Price Analysis: Will Chainlink Break the $8.5 Barrier Or Drop to $3″

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The post LINK Price Analysis: Will Chainlink Break the $8.5 Barrier Or Drop to $3″ appeared first on Coinpedia Fintech News

The price of Chainlink (LINK) continued to test the lower boundary of its extended horizontal consolidation on Friday. Over the past two months, bulls have struggled to push the price beyond $8.5. According to the latest cryptocurrency market data, LINK’s price was hovering around $6 on Friday, showing a modest increase of approximately 1 percent in the past 24 hours. Notably, the altcoin also experienced a significant surge in its daily average trading volume, reaching about $202 million, marking a 46 percent increase over the past day.

On-chain Insights into Chainlink (LINK) Price Action

Market intelligence platform Santiment suggests that Chainlink’s price is poised for a substantial breakout to the upside, thanks to a continuous decline in its exchange balance. Santiment points out that the amount of Chainlink available on crypto exchanges now represents only around 15.5 percent of the total coin supply.

This data hints at a potential bullish divergence in the coming weeks. Additionally, historical patterns indicate that Chainlink’s price has tended to react positively to significant drops in supply on exchanges, often resulting in bullish breakouts.

A Contrary Perspective

#Chainlink | Unlike the June $LINK price correction — where whale transactions and their holdings rose as prices fell — this time, we're seeing whale transactions decline while their holdings stay steady.

This isn't good! If #LINK breaks below the $5 support level, expect a… pic.twitter.com/1V6P0C2ylT

— Ali (@ali_charts) August 31, 2023

However, the bullish sentiment surrounding Chainlink (LINK) is met with skepticism by Ali Charts, a crypto analyst based in the United States. Ali Charts conducted an on-chain analysis, revealing a recent decline in whale transactions involving Chainlink (LINK), in contrast to the June/July breakout period when their holdings remained relatively stable.

Consequently, Ali Charts suggests a less optimistic near-term outlook for LINK’s price, particularly if the bulls fail to maintain a critical support level at around $5. In this scenario, the analyst anticipates a potential decline in LINK’s price, possibly reaching as low as $3 in the coming months.

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