- Chainlink’s (LINK) price could be headed for a significant upswing after a breakout from consolidation and a 19% rally.
- On-chain data suggests high network growth and potential whale accumulation, adding to the bullish sentiment.
Chainlink (LINK) has been showing encouraging signs lately. After a consolidation period and a 49% drop from its local top in March, the price surged 19%, breaking above the key 200-day exponential moving average (EMA)—a bullish signal. However, the token is currently facing resistance around $17.58.
Possible Retracement and Buying Opportunity
A retracement to the major support area around $14.62 could present a good buying opportunity for investors before the next leg up. This level coincides with the 61.8% Fibonacci retracement level, historically a significant support point. Additionally, on-chain volume data indicates a large chunk of trading happening at this price point, further bolstering its potential as a support zone.
Fueling the Rally: Ethereum ETF and On-Chain Activity
The recent approval of the Ethereum spot ETF has injected bullish sentiment into the crypto market, potentially benefiting Chainlink as well. Furthermore, on-chain data from IntoTheBlock reveals a significant increase in active addresses on the Chainlink network, suggesting growing demand. Additionally, a spike in large transactions (over $100,000) in April can be interpreted as whale accumulation, another bullish indicator.
Bullish Target and Invalidation Point
If LINK finds support at $14.62 and overcomes the current resistance at $17.58, a 50% rally to $22 could be on the horizon. However, a weekly candlestick close below $13.59 would invalidate this bullish thesis and potentially lead to a 13% drop to $11.80.
Conclusion
While a retracement is a possibility, Chainlink’s technical indicators, on-chain activity, and broader market sentiment paint a promising picture. Investors should closely monitor the price action around the $14.62 support zone to potentially capitalize on a buying opportunity before the next upswing
