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Chainlink Nears $20: One Obstacle Remains, Metrics Flash Green.

Chainlink Nears $20: One Obstacle Remains, Metrics Flash Green.

On December 28, the price of Chainlink reached a local peak of $17.64 for the first time since April 2022. The cost of LINK is $15.65 as of this writing. For the first time in the previous two weeks, the altcoin’s price increased to a high of $15.86 over the weekend, marking a minor breakout.

LINK supply on exchanges has reduced, supporting a price recovery thesis for the altcoin.

The LINK price rally is supported by Chainlink on-chain metrics.
Santiment data shows that Chainlink’s supply on exchanges fell below 15% for the first time in four years. Within 6% of its peak, there are wallet addresses with LINK balances that are not zero.

The Santiment data below shows that Chainlink’s supply on exchanges decreased to 14.89% of LINK’s total supply. A drop in selling pressure is usually preceded by an increase in the LINK price when there is a decrease in exchange supply.

Chainlink encounters one obstacle on its journey to $20.
IntoTheBlock analysis indicates that Chainlink will encounter resistance at $18.82 on its route to $20. Between $15.35 and $18.82, or 53,510 wallet addresses’ total accumulation of 18.97 million LINK tokens, is the current support zone for the price of LINK.

The crucial resistance range for LINK is $18.82–$26.88. This zone, where 92,530 addresses purchased 50.35 million LINKs, is where the $20 target is located. It is therefore an important area to monitor for LINK pricing. It is more likely that LINK will rise to $20 once it breaks into this zone.

As can be observed in the LINK price chart below, as Chainlink breaks past resistance around $17.64, the altcoin’s 2023 peak, the price of LINK might rise to the bearish imbalance zone between $19.54 and $20.01.

A daily candlestick closing below the 50-day Exponential Moving Average (EMA) at $14.47 might invalidate the bullish thesis for LINK.

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