How A Hold Above $18 Could Help Chainlink Price Hit $34?

Chainlink (LINK) price was among the top 100 coins by gains in the last 90 days for popular cryptos with substantial market caps.

LINK has gained more than 37% in the last three months positioning it among altcoins with huge potential in case an altseason materializes in the first quarter of the year that would potentially run into beginning of Q2.

Chainlink Price Action Maintains Above Key Support

Analyzing the price action chart of LINK on a 3-day time frame indicated potential for future price movements to the upside.

Currently, LINK trades above a crucial support level around $18. which has repeatedly acted as both support and resistance previously.

The latest price action showed LINK maintaining above this level, suggesting strong buyer interest and a possible accumulation phase at this price zone.

If LINK continues to uphold the $18 support level confirming a successful retest, LINK would be positioned for a rebound towards $34.

– Advertisement –

This $34 target aligns with previous resistance peaks marking a substantial hurdle for future moves.

However, if LINK fails to sustain above the $18 support, the price could face a downtrend, potentially retesting lower support levels around $9.32, which historically acted as a consolidation zone before subsequent rallies.

Such a decline could reflect a broader bearish sentiment in LINK market, leading to decreased investor confidence and reduced buying pressure.

Failure to maintain this level, however, could indicate selling pressure overpowering buying momentum, resulting in a further drop, intensifying bearish outlooks for the near term.

Chainlink’s Monthly Users Growing

Also analysis on the Token Terminal, showed a striking uptrend in the number of active users on a monthly basis, indicating growing network engagement and potentially bullish market sentiment.

Starting from early January 2025, the active user count was around 5,000 and exhibited a gradual increase each month, with a significant jump noticeable in mid-January.

By February 2025, the user count had escalated sharply to approximately 15,000 users. This consistent increase in active users suggested a strengthening of the Chainlink network, which typically results in heightened demand and potential price appreciation.

The rise in active user numbers correlated the price testing a previously broken resistance, now acting as support. The support level being tested falls around the $18 price point.

Should the trend of increasing active users continue, the demand for LINK token could drive prices up towards higher resistance levels, potentially around $34.

Conversely, should the increase in active users not translate into sustained buying pressure, or if broader market conditions turn bearish, LINK might fail to hold the $18 support level.

A break below this could see the price retract further, possibly revisiting lower support levels.

The user growth serves as a bullish indicator, but it’s essential to watch for sustained demand to confirm any positive price action predictions.