As buyers aim to hold grip over $24, Chainlink remains at thin ice. Will LINK price manage to overturn the selling spree for a fresh rally to $30?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
As Bitcoin BTC $82 843 24h volatility: 0.7% Market cap: $1.64 T Vol. 24h: $18.78 B stabilizes above $102,000 and reclaims a $2 trillion valuation, the DeFi segment is gradually recovering. Among the top DeFi tokens with massive upside potential, Chainlink LINK $12.66 24h volatility: 1.3% Market cap: $8.08 B Vol. 24h: $272.16 M shines the brightest.
With a price surge of 1.49%, Chainlink maintains dominion over the $24 mark. With a market cap of $15.55 billion, Chainlink ranks as the 11th biggest cryptocurrency and crypto project in the market.
In the daily chart, the Chainlink (LINK) price action reveals a bullish failure to cross above the $26.62 resistance level. After creating a high at $27.18, the LINK price pulled back to the 20 EMA line near $23.90.
While the low price rejection created a low at $22.18, the Chainlink closing price has chained above $24. Currently, LINK price holds above the 20-day EMA dynamic support.
However, the pullback drops the daily RSI line to the halfway level. Nevertheless, the positive alignment of the EMA lines and the overall trend in the RSI line maintain a mildly bullish signal for the LINK price trend.
Using the trend-based Fibonacci level, the current intraday pullback of 0.99% tests the 23.60% Fibonacci level at $23.84. The pullback creates the fifth consecutive bearish candle, ending at a potential downfall.
A closing price under the 23.60% Fibonacci level could likely retest the $20 psychological mark near the 100-day EMA line. However, a bullish reversal will likely challenge the $26.62 resistance level.
In case of a bullish breakout, the upside potential will likely challenge the 67.80% Fibonacci level at $31.13.
While Chainlink stands at a crossroads near $24, the network witnesses a significant surge in transaction volumes. Over the past few days, the Chainlink network has witnessed a near 3x surge in large transaction volumes.
Compared to the $84.44 million large transaction volumes on January 25, Chainlink hit $222.9 million on January 27. This marks a significant surge and hints at a potential return of big whales.
Along with the transactional growth over the network, the daily active addresses have seen recovery. Compared to the recent low of 3.91K in active addresses, with 1.38K of new addresses, Chainlink registers a significant surge.
On January 27, the new addresses shot up to 1.78K, driving the active addresses to 5.31K. Hence, with the rising volumes and the growing network base, Chainlink is preparing to regain bullish momentum with a surge in market demand.
Chainlink’s bullish potential remains promising, with rising transaction volumes, growing active addresses, and sustained price levels above $24. However, breaking the $26.62 resistance level remains critical for LINK to achieve its $31.13 target. If the broader market recovers, the bullish hopes for Chainlink will likely drive the LINK token price beyond $30.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
