The native token of decentralized oracle platform Chainlink ($LINK) is currently facing “stiff resistance” as it tries to surpass the $20 mark, but if it can break through it, it could surge by nearly 40% as it moves to its next resistance area.
That’s according to popular cryptocurrency analyst Ali Martinez, who recently noted that Chainlink is struggling to move above the $20.03 mark as there are currently 5,330 addresses holding over 8.59 million LINK tokens between that level and $19.4.
Martinez added that if the cryptocurrency breaks through that resistance, its next critical resistance area would be around $26.87, meaning the cryptocurrency could surge nearly 40%.
His words come at a time in which a mysterious whale or institutional investor is accumulating a large amount of LINK tokens, having added more than $42 million worth of the cryptocurrency over two days.
According to on-chain analysis service Lookonchain, these 47 newly created wallets have added 2.23 million LINK tokens in just two days, withdrawing the funds from leading cryptocurrency exchange Binance after acquiring them.
The accumulation came days after the service noticed that four newly created wallets had withdrawn over 119,000 LINK tokens worth over $2 million from the same cryptocurrency exchange as the accumulation started.
It comes shortly after the price of LINK jumped ahead of that of other altcoins earlier after “some previously dormant wallets created the highest Age Consumed spike,” according to on-chain analytics firm Santiment. This spike came after the network showed signs of Fear, Uncertainty, and Doubt (FUD).
These dormant whales surfacing, Santiment noted, “likely contributed to the price jump,” amid “minor liquidations of wallets.” Last year, Chainlink also saw massive whale transactions ahead of the introduction of Chainlink Staking v0.2. This update significantly increases the staking pool capacity to 45 million LINK, representing 8% of the total tokens currently in circulation.
Another cryptocurrency analyst, Inmortal, posted on the microblogging platform X that after “years of research” he believe LINK is “extremely undervalued” and that “at some point in this cycle” the cryptocurrency could be worth $100 per token.
LINK is at the time of writing trading at $18.7 per token after rising more than 150% over the last 12 months, and more than 35% over the past 30 days.
Featured image via Unsplash.