Chainlink (LINK) has rebounded sharply from a market-wide downturn, surging from a low of $13.18 to $15.25. This 15.8% recovery follows a 13.6% correction, which saw LINK drop from $15.25 after a previous high of $16.34. The recent surge in wallet holdings and high trading volumes suggests growing institutional interest and renewed investor confidence.
Key Support and Resistance Levels
Historical patterns in altcoins like Ethereum suggest that such corrections often lead to price stabilization. If LINK maintains support at $13.18, this correction could strengthen its market positioning. Fibonacci retracement levels highlight key price zones:
- 0.236 level at $14.17
- 0.382 level at $14.50
- 0.618 level at $15.00
A sustained move above the $15.00 threshold could signal further upside potential, with the next target at $16.34. However, failure to hold this level may lead to a retest of $14.50 or even $13.18.
Volume and Momentum Indicators
Volume analysis supports LINK’s breakout, with trading volume reaching 25.137 million at press time—double the 9-day SMA of 12.568 million. Historically, such increases indicate strong trends, meaning sustained volume above 25 million could drive LINK toward $17.00.
Momentum indicators also favor the bulls:
- The MACD has shifted from a bearish reading of 0.335 at the $13.18 low to 0.190, with a bullish crossover at 0.145.
- The Rate of Change (ROC) has climbed to 10.78, echoing similar past recoveries that led to further price gains. If ROC remains above 10, LINK could reach $16.34; a drop below 5 may signal weakening momentum.
Market Sentiment and Open Interest Trends
LINK’s Open Interest fluctuated between 4.597M and 4.92M, peaking at 4.92M during the $15.25 rebound, indicating new long positions. A sustained rise above this level could push LINK higher, while a decline below 4.59M may suggest renewed selling pressure.
Additionally, CVD data showed strong selling during the drop to $13.18 but later indicated accumulation as LINK rebounded. If CVD moves above -3M, bullish momentum could dominate, potentially driving LINK to $16.34-$17.00.
Also Read: Chainlink (LINK) Nears Critical Reversal: Is a Bullish Breakout to $35 Ahead?
Chainlink’s sharp recovery highlights increased volatility, but key indicators suggest a bullish outlook. Maintaining momentum above $15.00 could lead to further gains, while a dip below $14.50 may trigger another correction. Traders should closely monitor volume, open interest, and CVD trends to gauge LINK’s next move.
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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