Chainlink (LINK) Price: Buy Signal Emerges After 50% Recovery, Rally to $45?

TLDR

LINK is consolidating around $15 level after rising 50% from April lows SuperTrend indicator has flashed a buy signal on LINK’s daily chart Inverse head-and-shoulders pattern formed with neckline at $15.30 Price targets include $17 in the short term, with potential for $31.85 and $45.50 longer term On-chain metrics show declining exchange reserves and increased wallet engagement

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Chainlink (LINK) is showing promising signs of an imminent breakout as it consolidates around the $15 level. After rising over 50% from its April lows, LINK is now testing a critical resistance zone that could determine its next major move.

The cryptocurrency is currently trading at $15.02, up 0.55% in the last 24 hours. Bulls are attempting to overcome the stubborn $15.30 resistance level, which coincides with the neckline of an inverse head-and-shoulders pattern visible on the 4-hour chart.

Chainlink
LINK Price

Technical analysts have spotted several bullish indicators aligning in LINK’s favor. Most notably, the SuperTrend indicator has flashed a buy signal on the daily chart, often considered a reliable tool for identifying the start of new bullish phases or trend reversals.

Adding to the positive outlook, the 9 EMA has crossed above the 21 EMA, confirming short-term momentum strength. This moving average crossover supports the idea that bulls are regaining control of LINK’s price action.

On-Chain Metrics Support Bullish Case

On-chain data provides further evidence of brewing bullish momentum. Exchange reserves have declined by 1.03% over the past seven days, suggesting reduced sell-side pressure and a less bearish long-term outlook.

Transfer volume has surged 73.2% over the last 24 hours, reflecting elevated coin movement. Active addresses have also increased by 11.06%, pointing to greater wallet participation and user engagement.

The derivatives market shows mild bullish sentiment with a funding rate of 0.0090%, indicating that long positions dominate but without excessive leverage. This measured optimism is constructive as it limits the risk of sudden liquidations.

However, some caution is warranted as exchange netflows spiked 37.46% in the last 24 hours, indicating a short-term increase in deposit activity. Such spikes can sometimes signal increased near-term selling pressure.

LINK has been range-bound between $10 and $16 since March, consolidating after a volatile start to the year. The current setup comes amid high-risk macroeconomic conditions, with rising global tensions particularly between the US and China.

Potential Price Targets

If LINK breaks above the critical $15.30 resistance level, it could target the $17 mark in the short term. This would require clearing both the inverse head-and-shoulders neckline and the 200-day moving average and exponential moving average, which have clustered in the $16-$17 range.

For the longer term, some analysts believe LINK may be preparing for a fifth wave rally. This next phase could see LINK break through resistance zones and surge toward higher targets at $31.85 and potentially $45.50.

The bullish case for LINK is further supported by strong fundamentals. Chainlink’s role as a leading DeFi oracle has been solidified by partnerships with major institutions like Fidelity International and Sygnum. Its integration into DeFi and NFT projects drives demand for the token.

Chainlink currently secures 54% of total value secured by oracles. Rising total value secured and network usage, driven by Decentralized Oracle Networks, increase demand for LINK tokens.

The upcoming Chainlink 2.0 and its staking roadmap could reduce circulating supply by locking tokens, potentially exerting upward price pressure.

If bulls fail to maintain strength above key support levels, LINK could face a deeper pullback. A break below the $14 support could accelerate selling pressure, potentially dragging the price toward lower demand zones around $12 or even $10.

LINK’s position around this key resistance will likely determine its short-term trend, with a decisive move in either direction shaping price action in the coming weeks.

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