Chainlink (LINK) has experienced a notable price surge of more than 5% within the last 24 hours, diverging from the broader market trend. Recent data indicates that LINK’s market valuation has exceeded $10.1 billion, with its price trading close to the crucial resistance level of $17.5. Furthermore, LINK’s daily trading volume has surged by 80%, amounting to $858 million.
Chainlink’s On-Chain Data Shows Promising Signs
According to on-chain data provider Santiment, Chainlink surpassed the $17.50 mark for the first time in six weeks, demonstrating a strong performance in the cryptocurrency market. On-chain analysis reveals that for every Chainlink transaction at a loss, there are 11 transactions in profit, the highest ratio since December 2022. This trend suggests a bullish sentiment surrounding LINK’s recent price actions.
However, LINK’s price is currently facing resistance due to a daily sell order block historically positioned by significant market players at $17.58, aligning with a weekly resistance barrier at $16.48. Should buyers fail to push LINK’s price higher, a pullback could be imminent.
Future Trends for LINK
The volume profile indicator analysis shows substantial trading activity around $14.62, implying potential support for the anticipated correction. This area also corresponds with the 61.8% Fibonacci retracement level, presenting an attractive zone for potential accumulation and a possible second bullish leg.
Key Takeaways for Investors
– The recent bullish sentiment following the spot Ethereum ETF approval has spurred market optimism.
– Consistent support around $14.62 on the weekly chart could propel LINK to retest $17.58.
– Overcoming this resistance may lead to a 50% price increase, targeting $22.
– Conversely, a weekly close below $13.59 could undermine the bullish outlook, potentially causing a 13% drop to $11.80.
– Rising active addresses on the network suggest increasing demand for Chainlink.
The recent surge in LINK’s price, coupled with strong on-chain data and bullish market sentiment, paints a promising picture for Chainlink’s future trajectory. Nonetheless, investors should remain cautious of potential pullbacks and monitor key support levels closely.