Despite a prevailing bearish trend resulting in a 9.13% decrease in the past 24 hours, the current market caution and escalating activities may position Chainlink [LINK] for a potential surge in its value.
An in-depth analysis by CryptoCrypto explores LINK’s prospective upward trajectory in the upcoming trading session, emphasizing crucial levels to monitor closely.
Chainlink Enters Positive Territory Following Establishment of Key Support Level
LINK’s recent decline in price has resulted in the formation of a double-bottom pattern, a bullish chart formation where the price hits the same low multiple times before beginning an upward move.
In the case of LINK, this pattern materialized at $10.84, after which the price started its upward momentum. This level coincides with a significant demand area identified by the In and Out of Money Around Price (IOMAP) data from IntoTheBlock.
According to IOMAP data, the support level lies between $10.85 and $10.51, where more than 10.24 thousand buyers have positioned orders for 15.95 million LINK tokens.
This clustering of buying interest indicates that LINK is presently in an accumulation phase, potentially paving the way for future price escalations.
Traders Uphold Positive Outlook on LINK
Recent insights from IntoTheBlock underscore that traders are maintaining an optimistic attitude toward LINK, driven by trends observed in Exchange Netflow and substantial transactions.
Throughout the last week, there has been a noticeable outflow of LINK from crypto exchanges, totaling a negative 386.67 thousand LINK tokens. This pattern signifies a growing confidence among market participants in the likelihood of LINK’s price appreciation.
Simultaneously, the number of large transactions exceeding $100,000 has surged, reaching a peak of 196 transactions over the past seven days.
This surge implies that prominent LINK holders, often known as ‘whales,’ are actively accumulating additional LINK tokens, further reinforcing the favorable market sentiment.
Forecasting LINK’s Future Trajectory: Upward Momentum or Downward Correction?
As LINK navigates the current market landscape, the next target level, assuming the support level on the chart holds firm and the sentiment remains bullish, is projected at $12.98.
On the contrary, in the event of the demand area faltering, a decrease in buying pressure, and LINK violating this crucial support level, it could potentially retreat to a lower price point of $9.28.
A substantial shift towards a bearish outlook may be triggered if the overall market sentiment turns negative, particularly if Bitcoin initiates a downward trend.