Monday, March 4, 2024

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.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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