The price of Chainlink is increasing at a rate it has not experienced in the past few months, largely due to its robust market factors. Big wallet updates just added these millions of LINK tokens to their portfolios as exchange holdings are dropping to multi-month lows. Meanwhile, technical charts also indicate that the token is possibly in the longest period of growth to date. These combined factors are setting the stage for the next potential leg in Chainlink’s rally.

LINK Price Extends Rally on Strong Buying Activity

Chainlink’s price reached $22.46 after five straight days of gains. The token has climbed more than 113% from its lowest point this year. Its market capitalization is now above $15 billion, according to CoinMarketCap.

Data from Nansen shows that whales now hold 4.53 million LINK tokens. This is a 21% increase in the last month and a 41% rise over the past 90 days. This accumulation suggests sustained confidence among large investors.

Whale Buying and Declining Exchange Reserves

Whale accumulation is occurring alongside a drop in exchange reserves. The total number of LINK tokens on exchanges has fallen from 281 million last month to 273 million. Lower reserves often mean reduced immediate selling pressure.

Chainlink’s development team has also launched a token buyback program. It will use revenue from on-chain activity and enterprise services to purchase more LINK. This may gradually reduce the supply in circulation.

Elliott Wave Pattern Points to Further Gains

According to technical charts, LINK is in the third wave of an Elliott Wave. This is where most time is taken, and the price movement may be greatest. The token previously formed a double-bottom near $10.95 and broke above a neckline at $17.85 in May.

Analysts are targeting the 23.6% Fibonacci retracement level at $25.51. This is about 15% above current levels. Nevertheless, the bullish sentiment may face a doubting moment on the type of price below $20.