Key Insights
- Chainlink moves slowly on the long term, but could be in for some bullish action on the medium to short terms.
- The cryptocurrency is eyeing a push towards $32, as long as the bulls maintain the ongoing momentum.
- IntoTheBlock recently pointed out that strong resistances sit around $27 – $29, and could be hard to break.
- If Chainlink does break through, it could be set to beat Tron and become the 10th largest cryptocurrency by market cap.
Chainlink has been one of the leaders in the defi space for years. However, this real-world utility has been muted in its price so far, with the cryptocurrency’s YTD gain of less than 30% according to data from TradingView.
Despite this sluggishness in the long term, LINK has gone up by 25% over the last week.
This indicates that the bulls are active. Despite the bears maintaining control at some of the cryptocurrency’s critical resistance zones, the bullish momentum shows that a price push to the $32 zone could be underway.
Here are some of the factors that could drive this trend.
Current Market Overview
According to data from CoinMarketCap, Chainlink trades at around $25.897 at the time of writing.
This has helped it to secure its spot as the 11th cryptocurrency by market cap, with a value of $16.5 bullion.
The cryptocurrency’s impressive 25% move over the last week shows a broader bullish trend in the crypto market, especially with its growing partnerships in the defi space.
Recently, the cryptocurrency partnered with Ripple Labs, which intends on integrating ChainLink’s price feeds into its RLUSD stablecoin.
Judging by the charts below, we can see an ongoing bullish reversal from the $19.24 zone, especially after the cryptocurrency broke out of the falling wedge shown.
This trend has helped it to bounce off its 200-day EMA, leading to three consecutively bullish days between 14 and 17 January, and then again between 20 and 21 January.
These arrangements of bullish candlesticks show that the bulls are active, and have solidified Chainlink’s position above the $24.128 support (marked by the 23.6% Fibonacci level).
The charts also show that if LINK breaks above the $27.14 resistance, it could be on its way to testing the next Fibonacci retracement level around $32.027, which could be a price increase of around 30%.
On the flip side, if it fails to hold support around $24.128 could result in a retest of the 50-day EMA at $21.97.
On-Chain and Derivatives Analysis
Chainlink’s derivatives market also shows that the optimism is rising, with its open interest now above the $1 billion mark according to Coinglass.
Whale Activity and Holder Metrics
According to recent on chain data provided by IntoTheBlock in a recent tweet, around 80% of LINK holders are currently in profit
Currently, 80% of $LINK holders are in profit, a figure that matches the December highs.
On-chain data indicates significant resistance levels at $27 and $29, in line with where the asset's price faced resistance last year. pic.twitter.com/N2DgNhL34l
— IntoTheBlock (@intotheblock) January 22, 2025
According to IntoTheBlock, this figure matches patterns last seen in the December highs.
With this being said, IntoTheBlock notes that significant resistances sit around the $27 and $29, where LINK is currently testing.
If breakouts to the upside occur from here, LINK could indeed explode upwards to this $32 price level or even higher.
This move would also push its market cap upwards, helping it to beat Tron ($TRX) and become the 10th largest cryptocurrency by market cap.
Overall, the ongoing price action of Chainlink shows its growing influence in the crypto market.
Considering all of the above LINK appears poised to make further gains, as long as it keeps its head above the $19 price level and manages to break above the $27 – $29 price levels.