Chainlink (LINK) demonstrated notable resilience despite the ongoing market downturn, bolstered by fluctuations in Ethereum (ETH) prices and Bitcoin’s correction. Early week recovery in Ethereum spurred investor sentiment, with LINK showing a 4% increase today. This development underscores the cryptocurrency’s ability to withstand broader market pressures.
What Caused the Resistance Level in LINK?
Bitcoin’s four-day decline, which saw its value drop to $67,000, impeded the recovery of several altcoins. Nonetheless, LINK exhibited a 4% rise, forming a reverse candlestick pattern indicative of strong resistance against market correction. Beginning its rally in mid-May, Chainlink bounced back from a $12.8 support level, leading to a 34.2% increase in its trading price, now at $17.23.
The rally on May 16 marked a break from a two-month downward trend. Even with potential further corrections in Bitcoin, LINK has stabilized above the $16 support threshold, showcasing its robust market position.
How is LINK’s Price Predicted to Move?
The new bullish formation starting at $16 suggests that buyers are steadfastly defending this support, aiming for higher price targets. Data from Santiment indicates a profitable outlook, with an 11:1 ratio of profitable transactions to those at a loss, the most favorable since December 2022. This high profit-taking ratio hints at strong bullish sentiment among LINK investors.
Key Takeaways for Investors
– Chainlink’s rally commenced in mid-May, driven by a rebound from the $12.8 support level.
– LINK has broken a two-month downward trend and remains stable above $16.
– On-chain data reveals a high profit-taking ratio of 11:1, indicating robust market confidence.
– Potential price targets are set at $18.67 and $20.7, reflecting optimistic investor sentiment.
Conclusion
Chainlink’s recent performance highlights its ability to resist broader market corrections and maintain investor confidence. As the cryptocurrency stabilizes above key support levels, the outlook suggests potential further gains, driven by strong market fundamentals and positive investor sentiment.