Chainlink (LINK) reaches a 3-month high: What is driving this surge?

Chainlink (LINK) has surged 15.27% over the past week, peaking at $10.60 during the day – its highest level in over three months.

At the time of writing, this altcoin is trading at $10.48, up 6.38% in the last 24 hours. This increase coincides with a decrease in the amount of LINK held on exchanges and a surge in discussion about LINK on social media.

Why is Chainlink price increasing?

According to data from Santiment, approximately 13.5 million LINK coins – equivalent to 10.5% of the total LINK held on exchanges – have been withdrawn from exchanges over the past five weeks, indicating strong accumulation . Simultaneously, discussions about LINK on social media have surged to their highest level in three months, suggesting renewed investor interest coinciding with declining selling liquidation .

“The 15th largest cryptocurrency by market Capital has resurfaced in social media discussions throughout this week, which may be the reason for the recent slight surge,” the post stated .

The accumulation activity was further confirmed by whale wallets. Wallets holding between 1 million and 10 million LINK increased their holdings from 265.02 million to 288.04 million LINK in the last 30 days – an increase of 23 million Token, equivalent to 8.7%.

The group of wallets holding between 100,000 and 1 million LINK also purchased an additional 9.83 million coins, raising their total from 163.08 million to 172.91 million Token during the same period.

In total, these two wallet groups purchased approximately 32.85 million LINK in just one month, increasing their holdings by 7.7%. This reflects strong buying confidence from large investors.

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LINK's outlook remains positive.

Many traders see the uptrend as likely to continue after this breakout. Trader Quinten Francois pointed out LINK's breakout from a multi-year triangle pattern in post X.

Trader Clifton stated that the daily chart of LINK is forming a descending expanding wedge pattern. He predicted that LINK could grow by 100% to 150% if a breakout is successful.

“If LINK breaks out above the upper trend line of this wedge pattern, combined with a strong bullish candle and high volume , the uptrend could be strengthened. The upside target could reach 100-150% from the breakout area,” the analyst Chia .

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