Chainlink (LINK) is at a crucial juncture, where failing to surpass the $23.78 resistance level could lead to another sharp decline. The cryptocurrency market is experiencing heightened volatility, with LINK suffering a 30% drop in the past week. This mirrors the broader market downturn, with Bitcoin falling below $100K due to macroeconomic pressures. Analysts warn that unless LINK reclaims this key resistance, further downside risks loom.
Key Resistance at $23.78: A Make-or-Break Level
According to crypto analyst Ali, Chainlink’s price action is at a decisive point. The $23.78 level is particularly significant because 78.95% of LINK’s total supply (789.49 million tokens) is currently in profit, with an average purchase price of $15.28. Meanwhile, 14.18% of holders bought near $23.78, meaning a price approach to this level could trigger selling pressure as traders look to break even.
If LINK successfully surpasses this resistance, it could signal a bullish rally with price targets of $25, $30, and potentially higher. However, a failure to break through could lead to another price drop, extending the ongoing bearish trend.
Whale Activity Raises Market Concerns
Large holders of LINK, commonly referred to as whales, have been actively selling off their holdings. Recent data reveals that 4 million LINK tokens were offloaded within 48 hours, reflecting declining confidence among major investors. This massive sell-off contributed to the 30% weekly decline, with LINK currently trading at $18.11. However, a 12% surge in trading volume ($588.13M) suggests growing investor interest, potentially signaling a buy-the-dip opportunity.
Also Read: Chainlink Whales Dump 4 Million Tokens, Fueling Bearish Sentiment and LINK’s 15% Weekly Loss
Can Chainlink Ever Reach $50 Again?
During the 2021 bull run, LINK reached its all-time high of $52.88. Since then, the token has struggled to reclaim those levels. Despite its price struggles, LINK continues to see increased adoption. Key developments, including Trump’s World Liberty Financial project acquiring LINK, discussions on a potential Chainlink ETF, and the expansion of Chainlink’s Cross-Chain Interoperability Protocol, are fueling optimism.
Analysts suggest that if LINK forms an uptrend and surpasses the critical $23.78 resistance, price targets of $28.50, $36.50, and even $50 are achievable. However, market conditions and investor sentiment will play a crucial role in determining LINK’s future trajectory.
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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