The Chainlink (LINK) price has made an impressive recovery, jumping by 23% from its recent low of $18 to hit $20. This rise is backed by higher trading volume and increased activity on the network. Crucially, the price surge broke through a key resistance level, suggesting further potential for growth.
Additionally, Chainlink reached a 22-month high above $20, driven by heightened network activity and significant transactions from large investors. However, some resistance was observed around $20.8 and $24.83. Intraday trading volume for the LINK coin spiked to $739.5 million, marking a significant 17% increase.
Chainlink’s Remarkable Recovery: A Closer Look
In late January, Chainlink initiated a recovery phase, rebounding from $13.50. This positive momentum propelled a 46.7% surge in the LINK price over three weeks, marking its first foray above the $20 mark in two years.
Examination of higher time frame charts revealed that this upward trend recently surpassed the $17.5 neckline resistance of a long-term cup and handle pattern. Such pattern development is often seen as an early sign of a downtrend bottoming out, providing traders with a fresh entry point.
Furthermore, insights from Intotheblock’s content partner @EkponoAkwaowo emphasized that Chainlink ($LINK) soared to a 22-month high, surging by 11% to breach the $20 threshold. This increase in $LINK’s value aligns with a notable uptick in network activity, characterized by both an increase in active addresses and the creation of new ones.
$LINK hits a 22-month high as it surges by 11% breaking the $20 mark for the first time in years!
Also, there’s an increase in active addresses and creation of new addresses with noteworthy whale activity as a specific player goes on a buying spree.
📈https://t.co/71uoZqSKH5 pic.twitter.com/vW7XBaAucI
— champagne mami 💕 (@EkponoAkwaowo) February 12, 2024
Chainlink Price Forecast: Potential for Further Growth
Chainlink’s recent surge, coupled with significant whale transactions, indicates a strong buying trend among major stakeholders. If this pattern persists, there’s a possibility for the Chainlink price to surge by another 50%, potentially reaching a target of $30. However, this upward trajectory is anticipated to include intermittent periods of retracement as the asset consolidates its gains before resuming its ascent.
Technical Indicators: Assessing Market Dynamics
Bollinger Bands: The Bollinger Band indicator’s challenge on the upside suggests that buyers are currently dominating the market for this asset.
Average Directional Index (ADX): With a high value of ADX indicating strong directional movement, the LINK token is poised for a minor pullback, possibly around 37%, to allow for the recovery of exhausted bullish momentum.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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