Chainlink (LINK<\/a>) returned to mimic the broader crypto market downtrend as its price fell alongside top coins Bitcoin (BTC<\/a>) and Ether (ETH<\/a>) on Nov. 8.\u00a0<\/p>\n 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.<\/p>\n Overall, on a week-to-date timeframe, Chainlink has outperformed both Bitcoin and Ethereum.\u00a0<\/p>\n 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).<\/p>\n The Chainlink 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.<\/p>\n Interestingly, the LINK accumulation trend is rising in the days leading up to the launch of “Chainlink Staking.”<\/p>\n Chainlink Co-founder Sergey Nazarov announced at SmartCon 2022<\/a> that their long-awaited LINK staking reward function would go live in December. In addition, the project’s official website confirms<\/a> that it would enable “eligible community members” to stake LINK into its pool in December.<\/p>\n 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<\/a> about increased demand for the Chainlink tokens by the end of 2022.<\/p>\n LINK appears to have benefited in the short-term due to the euphoria around the Chainlink Staking function, given other coins have tumbled in unison in response to the crypto hedge fund Alameda Research’s insolvency rumors<\/a>.<\/p>\n #Chainlink<\/a> spiked all the way above $9.20 for the first time since August 13th, a ~3 month high despite very volatile markets. This rise has been supported by the largest amount of active $LINK<\/a> addresses in 5 weeks, and traders are longing aggressively. https:\/\/t.co\/ZxsZnveURm<\/a> pic.twitter.com\/lia6XAgSar<\/a><\/p>\n \u2014 Santiment (@santimentfeed) November 8, 2022<\/a><\/p><\/blockquote>\n From a technical perspective, LINK’s recovery rally since May has been confined inside an ascending triangle range.<\/p>\n Related:\u00a0Bitcoin heads to US midterms as research says dollar \u2018closing in\u2019 on a market top<\/a><\/em><\/strong><\/p>\n 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. <\/p>\n The token’s likelihood of continuing its downtrend and reaching its profit target stands at 44%, per the observation of ascending triangles<\/a> by veteran investor Thomas Bulkowski. The profit target is measured after adding the maximum triangle height to its breakdown point, as illustrated below.<\/p>\n That puts LINK en route to around $4.15 by December 2022, down about 50% from today’s price.<\/p>\nWhat’s making Chainlink stronger<\/h2>\n
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A 25% correction setup is still in play<\/h2>\n
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