The ChainLink (LINK) token flipped from the trendline support mark of $13 and surged over 30% this week.
Meanwhile, the up move is fueled by Ether ETF news which led to the sudden bounce. Additionally, the token has ended the correction phase and displayed demand at the lows.
The LINK token price escaped the key moving averages and gave a surprising up move which trapped the sellers, and short covering activity was noted this week.
At press time, LINK price traded at $16.52 with an intraday drop of 1.89%, reflecting neutrality on the charts. It has a monthly return ratio of 8.25% and 151.20% yearly.
The pair of LINK/BTC is at 0.000236 BTC, and the market cap is $9.69 Billion. Analysts are neutral and suggest that the LINK price may stretch the pullback and might retest the $20 mark shortly.
Can ChainLink Deliver Correction Ahead?
The ChainLink token price action displays the fumes of buying and still the key metrics looked in red and signifying the bears dominance.
Generally, a sharp reversal was seen, when the price shot up the key EMAs in a single go. Still, the sellers have grabbed their strength and might push the token price from the top again.
Source: Santiment
The daily charts of the ChainLink token signifies the base buildup activity near the $13 mark, meaning that the short term bottom was capped. Conversely, a break and close above the $20 mark would confirm the uptrend.
The RSI curve shot up to the overbought zone and saw a positive crossover on the charts.
Futures Data Reveal Long Unwinding Data
The Derivative Data signifies the drop in the open interest and reveals the long unwinding activity.
Source: CoinGlass
The open interest data noted a drop over 10.25% to $232.87 Million in the last 24 hrs, implying that the selloff might trigger soon.
Going forward, analysts on X explained that, before any sharp up move, a retracement to the trendline mark of $13 can be seen.
$LINK / $USD – Update
— Crypto Tony (@CryptoTony__) May 22, 2024
$16.70 is the level to flip on the weekly for a safe entry, for now i have to wait pic.twitter.com/mslm743Tcz
Source: X
Drop in Volatility and Weighted Sentiment
Amidst the price rally, the weighted sentiment dropped over 11.20% to -0.314 mark, revealing that investors are still not confident in holding their positions.
The price volatility remained low signifying low selling volume and displayed a drop in trading activity. The trading volume remained flat and displayed a drop of over 7.89% to $426.65 Million in the last 24 hrs.
Development Activity and Holders Data Outlook
For weeks, the development activity data kept increasing and reached the top mark (448), signifying the consistent development growth which might have led to the bullish trend ahead.
Source: Santiment
Going forward, the total amount of holders’ data noted a consistent rise and displayed the holders of the token sitting calmly and looking for further growth ahead.
The immediate support levels for the ChainLink token is $14 and $12, whereas the key upside hurdle is around $18, followed by $20.
Conclusion
The ChainLink (LINK) token price overtook the multiple EMAs mark in a single go and displayed an intense bullish move this week. Meanwhile, the token still trades in a downtrend and buyers need to break the $20 mark to revert the gains ahead.
