Chainlink (LINK) Price Bounces Back: Is $30 within Reach?

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Bitcoin (BTC) surged past $96,677 and showed a 4.2% volatility over the past day, while the overall crypto market exhibited new vigor. Meanwhile, Chainlink (LINK), priced at $20.26, witnessed an 8.64% growth in the same period. The digital currency’s daily volatility stood at 6.9%, and it boasted a market cap of $12.81 billion with a 24-hour volume of $790.87 million.

As an analyst, I’m observing that despite the notable progress, we’re still below the $20 milestone mark with a market capitalization of approximately $12.68 billion. With a promising breakout on the horizon, the question arises: Could Chainlink manage to retest its previous $30 swing high?

LINK Price in a Wedge Aims at a Breakout Run

On the 4-hour timeframe, the LINK’s price movement shows signs of a developing wedge shape, as the resistance and support trendlines appear to be merging. This convergence suggests a potential falling wedge formation.

At present, the Chainlink’s price movement appears to be springing up from its underlying trendline, indicating a potential fresh upward trend within this pattern, known as a wedge. This upward surge seems to originate from the significant support level of $18 and has successfully regained the previously breached region around $19.35.

At present, the Chainlink token’s price stands around $19.85, testing the 50 Exponential Moving Average (EMA) on a 4-hour scale. A potential breach of this dynamic resistance might suggest an opportune moment for purchasing.

Massive Offloading by Chainlink Whales in 7 Days

Over the last seven days, I’ve observed a significant shift in the Chainlink balance held in USD. Initially, on January 6, the balance was a substantial $23.82 billion. Yet, as of now, it’s decreased to $19.13 billion.

Over the past week, there’s been a significant change in the total value of whale holdings. Specifically, holdings valued over $10 million have increased from $17.68 billion to their current value of $13.98 billion.

Over the last week, the value of investments ranging from $100,000 to $1 million has decreased from $1.56 billion to $1.27 billion. On the other hand, investments worth between $1 million and $10 million have fallen from $2.82 billion to $2.35 billion.

Over the last seven days, there’s been an uptick in the data transfer among whales. This makes it uncertain if Chainlink will see a robust upward trend. Nevertheless, as the wider market recovers and regains speed, Chainlink stands poised to seize bullish momentum once more.

Will Chainlink Breakout Rally Reach $30?

In a positive outlook, the recent low points at the $19.35 supply area and the $18 psychological level suggest a bullish divergence on the Relative Strength Index (RSI) graph. This implies an increased likelihood of a rebound surge.

As the upward trend persists inside the falling wedge formation, it’s plausible that the Chainlink token will attempt to break through the upper resistance line.

The graph’s trajectory aligns with the resistance area around $21.78 and the $200 Exponential Moving Average (EMA) point. This suggests that if the upward trend persists, buyers might encounter a significant surge of selling pressure.

As the overall market continues to gain strength, it’s quite possible that Chainlink will experience a bullish surge, potentially overcoming the upcoming resistance at $26.10 and $30.73.

From another perspective, the significant backing for Chainlink lies at the $18 level and the nearby trendline that offers local support.

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2025-01-14 18:27