- LINK tests a key demand zone, with resistance at $23.92 determining its next move.
- Rising address activity and reduced sell pressure suggest growing investor confidence in LINK.
- Outflows increase, signaling less selling pressure, potentially leading to a bullish breakout toward $32.
Chainlink—LINK, is testing a key demand zone, and traders are wondering if a breakout is near. Despite a 4.39% drop to $19.84, positive sentiment from both retail and institutional investors remains. Rising address activity and weakening sell pressure suggest LINK might be ready for a shift.
LINK’s at a Crucial Juncture
Chainlink’s current price action points to a decisive moment. The price has recently tested the demand zone around $20. This stability hints at potential accumulation. But there’s a big hurdle ahead. The $23.92 resistance must be cleared for a bullish move to gain momentum.
If LINK breaks through this level, the price could surge toward $32. Such a move would signal a positive shift in market sentiment. However, failure to hold the demand zone could result in further downside. The coming days will be key in determining whether LINK can maintain its position or face additional challenges.
Signs of a Breakout: Rising Activity and Outflows
On-chain data reveals increasing activity in the Chainlink ecosystem. New addresses have surged by 46.39%, and active addresses are up by 74.07% in the past week. This indicates growing trust and interest in LINK’s utility. Inactive addresses have also spiked by 140.92%, suggesting renewed participation from dormant traders.
Transaction volume trends show mixed sentiment. Smaller transactions between $10 and $100 are rising, while mid-sized ones are declining. However, large transactions have jumped by 66.88%, reflecting confidence from both retail and institutional investors. This mix of buying pressure could fuel a price rally.
Exchange netflows are also telling a positive story. Outflows have increased by 3.79%, indicating reduced selling pressure. Historically, such trends often precede bullish price movements. If this continues, LINK could break resistance and rise toward $32.
