The Chainlink (LINK) chart reveals a compelling narrative of resilience and breakout potential. LINK recently bounced off crucial support at $9.00, a level that had previously acted as both support and resistance, indicating its significance.
This support rebound followed a sustained testing period, showing strong buyer interest at these lower levels. From there, LINK surged to break through a key horizontal resistance at $15.00. This area had consistently capped price advances, making its breach significant for future momentum.
With this upward movement, LINK now approaches a descending trendline, part of a bullish flag pattern. Analyst World of Charts noted that a successful clearance of the trendline, coupled with maintaining support above $15.00, positions LINK for a potential rally toward the $30.00 target.
This scenario depends on continued buying pressure and market confidence. If LINK can hold these gains and push past intermediate resistance at $21.00 and $25.00, we could see it easily reach and possibly exceed $30.00 in the upcoming weeks, completing its recovery and bullish reversal narrative.
On-balance Volume, RSI and MACD Signal
LINK revealed key indicators pointing toward potential gains. The On-Balance Volume (OBV) indicator rose, signaling strong buying pressure as trading volumes increased alongside the price, suggesting accumulation by investors.
Similarly, the MACD showed bullish momentum as the MACD line crossed above the signal line, indicating a possible upward price movement. The RSI dipped near the oversold territory below 30 but rebounded, hinting at a potential end to the selling pressure and the start of price recovery. This was an early sign that LINK could be gearing up for a rally.
Furthermore, the VPVR highlighted significant trading activity around the current price levels. The presence of a high volume node provided substantial support, reducing the likelihood of further price drops and reinforcing the potential for a price increase.
All these indicators, when combined, suggested that LINK was in a strong position to ascend, with the next major resistance level visible on the chart potentially being the target.
Holding Over 1M LINK Hit ATH and Exchange Netflow Heatmap
Chainlink recently surged above the crucial $13.65 mark, a level not seen since July, showing a strong breakout from its usual range relative to other altcoins. This price movement coincides with a significant uptick in whale activity, marking a three-month high.
Specifically, whale wallets holding between 100,000 to 10 million LINK have increased their stakes dramatically. Over just seven weeks, these key stakeholders amassed an additional $369.8 Million worth of LINK, reflecting an 8.2% increase in their total holdings.
The Exchange Netflow Heatmap reinforces this bullish sentiment. It highlights increased accumulation among altcoins like LINK among others as investors actively scoop them up. Even Bitcoin isn’t immune, with a notable rise in exchange inflows hinting at impending selling pressure.
This dynamic landscape presents a pivotal moment for Chainlink, as the accumulation and strong whale activity could potentially propel LINK’s price toward higher valuations, capitalizing on the current market enthusiasm.
