Chainlink (LINK) is a key player in the decentralized oracle ecosystem, LINK is trading at around $14.71. Over the past 24 hours, an approximate 1.89% decline has been observed in LINK’s price, giving it a market capitalization of about $9.67 billion.
Despite this very short-term plunge, Chainlink has shown great resistance with an increase of 18.70% in the last week, thus indicating a renewed interest among investors.
The recent price action of Chainlink indicates a potential bullish reversal. After peaking at $30.92 in December 2024, LINK experienced a significant correction, finding support around the $12.25 level. This area aligns with the 50% Fib level.
LINK is currently trading below the 100-day EMA at $15.67 and the 200-day EMA at $14.92, indicating a bearish trend in the medium to long term. These EMAs are acting as significant resistance levels. A decisive move above these thresholds could signal a shift in momentum and potentially confirm a bullish reversal.
The MACD indicates weakening bullish momentum as the MACD line crosses below the signal line near the $14.80 mark, denoting a bearish crossover. In addition, the histogram is on a declining trend, which would indicate that buying pressure is decreasing.
A falling wedge pattern can be seen on the daily chart, often considered a bullish reversal pattern. This breakout of the pattern indicates that a rise in the price could be seen, leading to targets of $15.28 to $35, depending on the strength of the breakout.
Chainlink Price Targets
In a bullish case, if Chainlink breaks the nearest resistance at around $15, it would be eyeing $15.28 short-term and could climb to about $17, reaching further at around $22.50, at the 0.618 Fib level.
On the downside, if selling pressure resumes and LINK breaks below $13, it could be back at that key level of support at $12.25. Further weakness could take it down to $10.50.
Whale Activity
Over the past week, a visible accumulation of LINK has taken shape in newly created wallets, showing an increasing interest among investors. A minimum of 15 newly created wallets have collectively withdrawn 2.52 million LINK, worth approximately $36.43 million, from Binance.
Such a massive outflow indicates a possible bullish sentiment among the whales or institutional investors looking forward to a price rally.
Utility tokens and DeFi projects can lead the next market cycle, and Chainlink has become one of their representatives.
Chainlink builds good fundamentals on the back of the aggressive partnership streak it has been on, especially in the USA, and through a rapidly growing ecosystem.
The current building blocks indicate that the rally may even surpass the previous highs. It is just a matter of time before the price of the token catches up with the real-world adoption skyrocketing.
