Bitcoin (BTC) has surged past the $96,000 mark, with a notable 5.87% recovery in the past 24 hours, providing a significant boost to the broader crypto market. Amid this momentum, Chainlink (LINK) has posted a solid 8.64% increase, yet remains below the $20 threshold with a market cap of $12.68 billion. With the market showing signs of recovery, many are wondering if Chainlink could challenge its previous high of $30.
Price Action Shows Bullish Potential
On the 4-hour chart, Chainlink’s price action is forming a potential falling wedge pattern, with converging trendlines indicating a possible breakout. After bouncing off the $18 support level, Chainlink has reclaimed the $19.35 zone, signaling a potential bullish cycle. Currently trading at $19.85, the token is testing the 50 EMA line, a dynamic resistance that, if broken, could signal a buying opportunity for traders.
Whale Offloading Raises Concerns
Despite Chainlink’s positive price action, a notable shift in whale holdings could dampen the outlook. Over the past week, Chainlink’s balance by holdings has seen a significant decrease, from $23.82 billion to $19.13 billion. The holdings of over $10 million saw the most dramatic drop, from $17.68 billion to $13.98 billion. This offloading by whales raises concerns about the strength of a sustained bullish rally.
Resistance Levels and Potential for $30
Despite these concerns, the formation of bullish divergences in the RSI at key support levels ($19.35 and $18) suggests a recovery is possible. If Chainlink can continue its uptrend, the next resistance levels lie at $21.78 and $26.10, with the ultimate target being the $30.73 mark. However, the $18 psychological support and local trendlines will remain crucial in determining whether Chainlink can break through these significant hurdles.
Also Read: Chainlink (LINK) Shows Signs of a Breakout: Will the $23.92 Resistance Unlock a Surge to $30?
In conclusion, while the offloading by whales presents challenges, the broader market recovery and bullish price action suggest that Chainlink could see a rally towards $30 if it successfully breaks through key resistance levels.
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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