Chainlink (LINK) bulls are back in control, with analysts eyeing a potential surge towards $15.50 if key resistance levels are breached. This bullish outlook follows a period of market consolidation and a recent spike in trader capitulation, which some analysts view as a sign of a potential market bottom.
According to analyst Ali Martinez, breaking through the crucial resistance level of $14.44 could be the catalyst for a significant price increase. Data from IntoTheBlock reveals a strong supply wall at this price point, but surpassing it could propel LINK towards $15.50.
On the support side, the price range of $12.52 to $12.87 acts as a critical buffer zone. A significant number of investors, holding roughly 38.32 million LINK tokens across 9.1k addresses, are in profit within this range, indicating strong buying pressure.
For further upward movement, LINK must overcome the resistance level between $12.92 and $13.26. This zone is backed by 10.93k addresses holding 44.04 million LINK tokens, suggesting a hurdle that needs to be cleared.
Trader Capitulation as a Bullish Signal?
Two days prior to this analysis, Chainlink experienced a significant spike in trader capitulation, with realized losses reaching $60 million on July 8th. This event, the largest capitulation event for LINK in 2024, could be interpreted as a sign of a potential market bottom. Historically, such spikes in capitulation have preceded market recoveries. For example, a similar capitulation event on April 13th was followed by a 17% price increase for LINK within the next ten days.
Adding to the bullish sentiment, dormant LINK tokens have recently begun circulating, signifying a possible shift in market sentiment or anticipation of significant price movements.
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Renowned Analysts Remain Bullish
Michaël van de Poppe, a well-respected analyst, highlighted Chainlink’s recent recovery from a critical support zone, hinting at the potential for substantial price increases. He pointed towards LINK’s formation of higher lows and higher highs, which is a technical indicator of a bullish trend.
Current Market Position
As of today, July 12, 2024, Chainlink is trading at $12.42 with a market capitalization of $7,554,923,477. While the price has dipped slightly by 2.34% in the last 24 hours, LINK has still managed a 7.73% price increase over the past week.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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