Chainlink price demonstrates stability within the volatile cryptocurrency market environment. The price increased after its previous dip to showcase improved buying demands.
Market observers follow LINK price ability to sustain its rising trend by breaking past the $20 mark amid more selling pressure.
Chainlink Price Bounces Off $13.07
Chainlink price gained momentum by resisting its dip at $13.07 to demonstrate robust recovery. The digital asset reached $16.16 during its daily closure, with a 17% increase. This movement indicated bullish dominance, as long-tail candles on the daily chart suggested sustained buying interest.
Notably, market trends coupled with growing investor confidence in Chainlink price potential drove the market recovery.
Buyers show ongoing activity within the $16 demand zone following the LINK price rise from $13.07. Even though the price experienced a temporary recovery, it continues to face downward pressure after observing a 15% price drop previously.
Resistance at $17.31 Could Determine the Next Move
Meanwhile, Chainlink price needs to break through resistance at $17.31 before it can attempt sustained growth. LINK’s ability to surpass this resistance will enable it to advance toward the $20 psychological level, securing a sustained upward trend.
The bearish crossover between the 50-day and 100-day exponential moving averages continues as these indicators approach a death cross pattern with the 200-day EMA. However, the RSI has recovered from its oversold state, indicating that purchasing power might be on the rise.
Besides, a bullish outlook for Chainlink requires the price to rise above the 50% Fibonacci retracement point at $17.30. Another retest of the $13.12 support level can occur if Chainlink fails to maintain a close price above it.
Meanwhile, recent analysis shows Chainlink price could experience a rally after the TD Sequential indicator displayed a potential buying opportunity. The TD Sequential indicator displayed a “9” pattern to suggest an upcoming price increase.
Does Rising Exchange Supply Pose a Challenge for LINK Price?
More so, crypto analyst Ali Martinez discovered that 2.23 million LINK tokens moved to exchanges during the last two weeks, thus raising the total exchange-supplied LINK tokens to 197.14 million LINK. The growing number of tokens available for trading creates market-wide fears about strong selling pressures.
A growing number of LINK tokens stored on trading platforms suggests investors may soon start selling their tokens. That could block its potential upward movement.
The asset faces the possibility of another market downturn when selling pressure reaches critical levels, according to the analyst’s assessments. Chainlink stands to sustain its recovery path as long as demand exceeds additional token supply.
