Chainlink (LINK) Price Jumps 7.5%, This Breakout To Trigger Major Rally

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As a researcher with a background in blockchain technology and cryptocurrency markets, I find the recent performance of Oracle service provider Chainlink (LINK) particularly intriguing. In a market correction where most major cryptocurrencies have experienced significant losses, Chainlink has decoupled, showing impressive gains, with over 6% in the last 24 hours as of press time.

The pricing of Chainlink’s Oracle services, provided by Chainlink as a service provider through the LINK token, has largely diverged from the broader market downturn over the past day, experiencing an increase of over 6%. At present, the LINK token is approaching its significant resistance level at $17.5 in value. The total market capitalization for Chainlink now exceeds $10.1 billion. Additionally, the daily trading volume for LINK has significantly risen by approximately 80%, reaching a high of $858 million.

Chainlink On-Chain Data Flashes Bullish Signal

As a researcher analyzing cryptocurrency market trends using data from Santiment, I’ve noticed an impressive surge by Chainlink (LINK). For the first time in over five weeks, its price has broken through the $17.50 barrier.

Recent on-chain data shows an intriguing pattern: for every Chainlink transaction resulting in a loss, there have been 11 transactions with gains. This significant ratio represents the most prominent observation since December 8, 2022, implying a robustly optimistic outlook among investors regarding Chainlink’s latest price fluctuations.

Chainlink (LINK) Price Jumps 7.5%, This Breakout To Trigger Major Rally

This Breakout Can Trigger Major Surge for LINK Price

The current price of Chainlink is facing selling pressure around the $17.58 mark, which has served as a frequent spot for large traders to offload their holdings in the past.

At the current resistance level, which aligns with the weekly resistance mark of $16.48, buyers may struggle to push up the LINK price further. A possible downturn could ensue if this fails to materialize. According to the volume profile indicator’s assessment, there was a substantial trading activity around $14.62, suggesting this level as a potential support during the anticipated correction.

Significantly, this stage corresponds well with the 61.8% Fibonacci mark, making it an alluring area for investment during a possible second surge in bullish momentum.

Chainlink (LINK) Price Jumps 7.5%, This Breakout To Trigger Major Rally

As an analyst, I’ve noticed a significant increase in bullish sentiment among investors following the approval of an Ethereum spot ETF. Should Chainlink manage to hold above its current support at $14.62, it could potentially trigger a 18% price rally, pushing the cryptocurrency up towards the daily order block at $17.58. In an extremely optimistic scenario, if Chainlink can successfully breach this resistance level, we may see a surge in demand, driving the price up to around $22 – representing a potential total gain of 50% for investors. It’s important to note that whale accumulation has also been observed in Chainlink recently, which could further fuel this bullish trend.

Despite the strong indicators from technical analysis and on-chain information that favor Chainlink’s growth potential, a weekly candlestick closure under $13.59 would contradict the bullish perspective by establishing a lower low in a longer timeframe. This bearish development could trigger a 13% price drop for LINK, potentially pushing it towards a significant support level situated at $11.80.

Furthermore, the data from the blockchain reveals progress for Chainlink. The number of active addresses within its network has experienced a substantial rise, jumping from 2,900 on May 18 to 11,300 on May 21. This marked uptick suggests a heightened interest in the Chainlink platform.

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2024-05-24 09:42