Chainlink (LINK) Analysis: Potential 21% Rally Amid Low Selling Pressure
Chainlink's Potential for a Rally
Chainlink (LINK) price is currently trading under the $12.35 resistance level, a key barrier preventing the cryptocurrency from flipping $13.00 into a support floor. While LINK has faced selling pressure in recent weeks, the current low volume of profit-taking suggests that a breakout could occur soon. If Chainlink can sustain its momentum and overcome this resistance, it could be poised for a significant rally.
Analyzing the Market Momentum
The macro momentum for LINK price indicates a potentially sharp move on the horizon, with Bollinger Bands nearing a squeeze. Squeezes in Bollinger Bands, combined with low transaction volume, typically precede notable price movements, whether upward or downward. For LINK, this could signal a rise if the baseline of the indicator remains below the candlesticks, indicating bullish momentum.
- If Chainlink maintains its position within the Bollinger Bands and avoids a downward break, upward surge potential increases.
- Chainlink's short-term holders currently hold less than 2.9% of the total circulating supply, a 16-month low previously recorded in May 2023.
- This reduction of short-term holders minimizes the risk of significant sell-offs that could adversely affect LINK's price.
Pricing Dynamics for Chainlink
Chainlink is currently trading at $10.66, just below the local resistance of <$10.79>. Flipping this resistance into support is crucial for LINK to breach the $12.35 barrier and set the stage for a potential rally.
- If Chainlink's momentum continues, the price could rise to $12.94.
- Breaching this level would indicate a six-month high for the altcoin as it targets $13.00.
- A successful break above this point could generate further bullish sentiment in the market.
However, failing to breach $12.35 may lead to continued range-bound movement for LINK, potentially trapping it below this resistance while hovering above $9.35, as seen over the past six weeks, invalidating the bullish outlook.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.