Chainlink [LINK] initiates new bull cycle: All you need to know

• LINK has seen a jump in accumulation momentum in the past few days. 
• LINK whales have been at the forefront of this rally. 

At press time, Chainlink [LINK] appeared poised for a rally in the coming days, as an assessment of price movements on the daily chart revealed an increase in buying momentum. 

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Exchanging hands at $7.08 per LINK at press time, the altcoin’s value went up by 7% in the last week, per data from CoinMarketCap. With bullish sentiments in the market, LINK initiated a new bull cycle on 16 March, when its MACD line intersected with the trend line in an uptrend. Since then, the token’s value has increased by almost 10%. 

The commencement of the new bull cycle coincided with the return of LINK bulls. This was confirmed by the asset’s Directional Movement Index (DMI). On 16 March, the buyers regained control of the LINK market as the Positive Directional Index (green) rallied above the Negative Directional Index (red). At press time, the buyers’ strength at 22.50 rested solidly above the sellers at 15.40. 

Further, the positions of LINK’s key momentum indicators indicated that buying momentum exceeded selling pressure at press time. For example, LINK’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested above their center lines. RSI was 52.06, while MFI was 58.61, both in an uptrend position. 

Moreso, the token’s Chaikin Money Flow (CMF) indicator returned a positive value of 0.13 at press time. When an asset’s CMF is in an uptrend, the buying volume increases relative to the selling volume. This can indicate that traders and investors have become increasingly bullish on the asset and were even willing to buy on a higher cost basis. 

Source: LINK/USDT on TradingView

On-chain, the last few days have been marked by a jump in LINK’s Open Interest, data from Coinglass showed. With a corresponding price growth, this was a bullish signal that meant that investors were opening more trade positions. 

Source: Coinglass

With funding rates across leading exchanges Binance and DyDX positive in the last week, many investors remained convinced that LINK’s price may continue to see growth. 

Source: Santiment

Read Chainlink’s [LINK] Price Prediction 2023-2024

According to data from Santiment, LINK whales have increasingly accumulated the altcoin since the commencement of the new bull cycle. Data from the on-chain analytics platform revealed that the count of 100,000 to 10,000,000 LINK holders has gone up by 2% since 15 March.

Conversely, during the same period, holders of 100 to 100,000 LINK tokens have gradually distributed their LINK holdings.

Source: Santiment