‘Smart money’ flocks to Chainlink — Is $20 within reach for LINK now?

• Smart Money are massively accumulating Chainlink.
• LINK has closed above a short-term high but currently correcting.

Chainlink [LINK] is gaining traction in the crypto market as Smart Money investors accumulate the token, positioning it for a potential rally.

The broader market has shown signs of strength, with Bitcoin leading a bullish sentiment in the final quarter of the year. Chainlink, alongside DeFi tokens like Aave [AAVE] and Maker [MKR], has become one of the top tokens favored by large investors.

As of this week, Chainlink was the third most accumulated token by Smart Money, suggesting that it could be poised for significant gains in the coming months.

Source: iCryptoAI

LINK price prediction

Following the strong interest from institutional and individual investors, Chainlink’s price action has shown promising signs. The LINK/USDT pair recently broke above the neckline of a double bottom pattern, signaling a potential reversal in price.

This pattern formed after the market hit a low during the August 5th market crash. Chainlink then consolidated around its support level before moving upward.

After retesting this support, the double bottom was confirmed, and LINK broke through short-term resistance, indicating a structural shift.

The market is now in a correction phase, with the possibility of a drop to the trendline before another surge upward.

Source: TradingView

Key indicators like the MACD have turned bullish, with histogram bars showing increased buying volume, supporting the idea that LINK could reach $20 in the near future.

The Chaikin Money Flow (CMF) indicator is also positive, reflecting a strong influx of money. This positive trend aligns with Smart Money’s accumulation, suggesting that a 70% return on investment may be achievable if LINK reaches the $20 target by the end of the year.

Network activity

Network activity surrounding Chainlink further reinforces this bullish outlook. There has been rises of 25% in new addresses, a 59% in active addresses, and a 143% in zero-balance addresses.

Source: IntoTheBlock

These figures suggest that traders are gearing up to participate in the LINK market, just as Smart Money has done. Increased trading activity combined with growing investor interest could drive LINK to hit the $20 price point.

Holdings distribution

When analyzing the distribution of holdings, it becomes clear that Chainlink is experiencing dynamic shifts. Investors holding between 1 -10 million LINK tokens have increased their holdings by over 2%, while those with more than 10M LINK have reduced their positions by 5%.

Read Chainlink’s [LINK] Price Prediction 2024–2025

This variation in distribution, alongside increased buying and selling activity, points to a healthy market for Chainlink.

Source: IntoTheBlock

Smart Money accumulation, positive technical indicators, and rising network activity suggest Chainlink is well-positioned for a price rally. This could push LINK to $20 in the final quarter of the year.