Chainlink Enters ‘Extreme Buy Zone’ — Could $LINK Surge Past $30 Soon?

Sean Williams
Chainlink (LINK)

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  • LINK touches key diagonal support, forming a high-probability bounce setup.
  • On-chain MVRV metrics indicate extreme undervaluation and potential relief rally.
  • A decisive break past resistance could trigger a structural reversal above $30.

The Chainlink (LINK) ecosystem is signaling a potential turning point as technical patterns and on-chain metrics converge. Traders and analysts are closely watching the current price action, which suggests that the heavy selling pressure may be nearing an end, paving the way for a potential short-term rally. This alignment of technical support and strong fundamental indicators makes LINK a focal point for investors seeking a market rebound.

Technical Setup: Diagonal Support and Falling Wedge

Recent price movements highlight a critical touch on a long-standing diagonal support trendline, coinciding with a key local demand zone. This convergence creates a high-probability setup for a bounce, as the market tests its resilience.

Additionally, LINK appears to be forming a falling wedge pattern—a structure historically associated with bullish breakouts. Should LINK break out from this wedge, analysts predict it could target levels well above $30, signaling a significant shift in market momentum.

On-Chain Metrics Signal Extreme Buy Zones

Technical patterns are reinforced by on-chain sentiment. Data from Santiment shows the 30-day MVRV (Market Value to Realized Value) ratio placing LINK in “Extreme Buy Zones.” Such levels are historically seen at major market bottoms, indicating that the token is currently undervalued relative to long-term holder costs.

This fundamental insight strengthens the case for a near-term relief rally, as market psychology shifts from fear to cautious optimism. The combination of strong support zones and undervaluation increases the likelihood of a meaningful upward move in LINK’s price.

Also Read: Chainlink Price Turns Bearish: Key Supports Broken, Traders Watch $12.7–$16.6

Short-Term Outlook: Key Resistance Levels Ahead

The immediate future of LINK depends on its ability to clear the first resistance area following the potential bounce. A decisive move past this level would confirm a structural reversal, boosting long-term bullish prospects. Conversely, failure to hold current support could trigger a search for the next major floor, delaying any sustained rally.

Chainlink is at a pivotal market juncture. Technical support structures, coupled with favorable on-chain metrics, suggest that LINK may be primed for a significant rebound. Investors should monitor price action closely, as clearing initial resistance could herald a broader recovery and renewed upward momentum.

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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