Chainlink News: LINK Nears Key Support—Is a 31% Rally on the Horizon?

• Technical indicators suggest that if the Chainlink price maintains momentum above $22.85, a move towards $25.00 and potentially $30.46 is possible.
• On-chain data and market activity reveal moderate transaction volume and a 10.69% increase in Open Interest.

Chainlink’s price was at $24.59 at press time, soaring over 8% within the last 24 hours. Owing to the latest rebound, the LINK token’s seven-day gains hit 1.79%, covering up significant losses incurred this week. The token’s 24-hour trading volume had stood at $789.21 million, surging by 39.87%. It is currently well above the 0.382 Fibonacci retracement level, which is $22.85. It is at the level that created a strong support zone by generating buying pressure to counter potential dips.

Critical Levels & Upside Potential Targets For Chainlink Price

Technical indicators paint $22.85 as a key level for the price action of the LINK token. A sustained price above this zone may be the precursor to an upward continuation move. Should the bulls be successful in maintaining their momentum, the 0.5 Fibonacci retracement at $23.90 becomes the first stop to the north, acting as temporary resistance. The recent successful breakout above here should allow for a swing back north towards $25.00, another significant level of resistance.

Furthermore, if Chainlink’s price can overcome this resistance, a push to $30.46 is possible, which would represent a 34% move from current prices. On the other hand, failure to hold above $22.85 may lead to further downside pressure.

Technical Indicators Reflect Bullish Market Sentiment

The Parabolic SAR indicator suggests a possible shift toward bullish momentum, as the SAR dots recently moved below LINK’s price. For the upward movement to be sustained, however, the price must break above $27.00, where the last SAR dot was recorded.

Meanwhile, the MACD indicator reports a weak bullish trend for Chainlink. The MACD line was at 0.485 but still above the signal line of 0.606. Yet, the diminishing green histogram bars point to a loss of strength and the possibility of a bearish crossover if the MACD line goes below the signal line. This is why market players closely follow this occurrence since it would signal increasing downtrend pressure.

Whilst, the Relative Strength Index (RSI) is at 49.65, which shows a neutral market. A break above 50 could be an indication of growing buying pressure, and a move below 40 may be an indication of more bearish movement.

Meanwhile, according to CryptoQuant, on-chain data, the total transaction count for LINK is at 11K, which means moderate network activity. Historical trends show that surges in transaction volume have occurred when the price of LINK has rallied, especially during periods of high activity in 2020 and 2021 when the token approached $60.

Further, according to Coinglass data, the change in Chainlink Open Interest within the past 24 hours showed an increase of 10.69%, reaching $1.02 billion. This seems to indicate shrinking activity, especially considering that diminished positions might confirm this as more of a pullback.

Traders’ interest is expected to keep going to trends concerning Open Interest. Variance is usually a precursor to eventual high-movement movements. At the current support, Chainlink’s price is at a critical point. Hence, bulls are eyeing for a sustained breakout, as reported previously.