Chainlink [LINK] has been on a positive trajectory recently, benefitting from significant advancements within its ecosystem.
The rollout of staking services, expansion of its data oracle network, and the introduction of Secure Mint have all contributed to the positive momentum behind LINK.
At the current moment, LINK is priced at $11.53, marking a 4.80% increase over the last 24 hours. The pivotal question now revolves around whether this momentum can propel LINK to surpass the critical resistance level at $13.
Could Chainlink be Poised for a Bullish Turnaround?
Maintaining movement above $13 has historically challenged LINK. A peek into the current technical analysis reveals the Bollinger Bands tightening, indicating a potential impending breakout.
In addition, the MACD is showing signs of edging into bullish territory, hinting at a forthcoming upward surge. Nevertheless, breaching the formidable barrier at $12.82 is imperative for further advancement.
If LINK manages to clear this hurdle, it could spark a rally beyond the $13 mark.
Increasing Network Engagement Enhances Bullish Sentiment
The on-chain activity for Chainlink has been witnessing a steady uptick. Active addresses have risen by 1.25% over the past 24 hours, totaling 178.91K, indicating a surge in network engagement.
Furthermore, transaction count saw a 1.28% uptick, with 4.05K transactions recorded within the same time frame as per data from CryptoQuant.
These escalating metrics exemplify a growing demand for LINK, indicating robust network growth and fortifying the case for a potential breakout.
Decrease in Exchange Reserves Diminishes Selling Pressure
Another positive indicator for LINK’s price surge is the reduction in exchange reserves, dropping by 0.26% to 166.21M LINK over the past 24 hours.
This downtrend suggests a decrease in tokens being held on exchanges, easing selling pressure and setting up a conducive environment for price appreciation.
Short Positions Dominating Chainlink, but for How Long?
Presently, 53.35% of traders are holding short positions on LINK, while 46.65% have opted for long positions.
Nonetheless, a breakthrough past the $13 resistance could potentially trigger a short squeeze, compelling short sellers to swiftly cover their positions.
This scenario could prompt rapid price escalation, propelling LINK to new highs.
The recent price uptrend in Chainlink, coupled with bolstering on-chain indicators and decreasing exchange reserves, sets the stage for a potential breakout.
If LINK manages to breach the $12.81 resistance level, the token might witness a rapid upsurge. However, sustained buying interest and market backing will play a crucial role in determining the realization of this breakout.