Chainlink’s 11% uptick – Bulls eye $24, but THESE hurdles stand in the way
Buyers reclaim control after the crash! Can LINK extend its recovery toward $24?
Key Takeaways
What triggered LINK’s rebound?
A strong bounce from $16 support, paired with declining Exchange Outflows and whale accumulation, revived bullish sentiment.
What could confirm further upside?
A daily close above $24, alongside a lower Exchange Supply Ratio and sustained whale demand, could extend the rally.
Chainlink [LINK] bounced strongly from a key demand zone at around $16 on the daily chart. At press time, LINK traded around $19.25, up 11% in 24 hours.
The recovery followed a heavy sell-off during the broader market crash, suggesting that buyers may be regaining control. The next major resistance sat near $24, the key level LINK must clear to confirm a structural shift back to bullish.
Technical indicators flash green signals
LINK’s technical indicator pointed to the momentum continuation.
The altcoin’s Stochastic RSI rebounded from oversold levels, signaling renewed buying strength. This shift hinted that LINK could sustain its upward momentum if follow-through volume persists.
Still, bulls face a decisive test. For the rally to continue, LINK must break and close above the $24 resistance zone. A rejection could trigger another pullback toward the $16 support region.
On top of that, on-chain data adds more evidence of market resilience.
Chainlink’s exchange data supports bullish bias
On-chain data added another layer of optimism.
Exchange Outflows dropped notably in recent days, showing fewer tokens moved to trading venues. This pattern typically reflects stronger holder conviction and reduced sell pressure.
At the same time, the Exchange Supply Ratio (ESR) fell from 0.155 to 0.151, suggesting tighter supply conditions as demand grew near the current price band around $19.
By contrast, the spot market’s shrinking supply aligns with rising dip-buying activity, indicating renewed investor confidence in LINK’s medium-term prospects.
Whales step in at the dip
Supporting the bullish outlook, whale activity surged notably, too.
CryptoQuant’s Futures Average Order Size chart showed a notable increase in large whale orders near the recent lows.
As observed from the past, the coordinated surge of orders on market dips preceded previous explosive runs, and the same could come into play for Chainlink once again.
If accumulation continues alongside improving structure and momentum, a retest of $24 could arrive sooner than expected.
