Can Chainlink hit $23? Why LINK’s breakout seems closer than ever

• LINK price was still caught in the local sideways range, with support at $10 price region.
• The RSI divergence indicator signaled a rebound as LINK’s balance on exchanges declined.

Chainlink’s [LINK] price remained stuck in a consolidation ever since the 5th of August. However, if the price rebounds from $9.65 support, it could trigger a bullish trend. 

Conversely, if the price falls to $8.56, a larger downward trend may develop. A rise above $10.85 is crucial to confirm the next upward move. 

Current analysis suggests that Chainlink will continue to consolidate, but a breakout is likely soon as the market gathers momentum. 

Source: TradingView

This could lead to a reversal, pushing LINK toward its short-term high of $23 making it a good asset to invest in on a long-term or short-term basis.

Is the rebound around the corner? 

The RSI indicator on the 4-hourly chart was nearing the 50% level at press time, signaling a potential market rebound.

The indicator formed a double bottom at 46% and is now moving towards 50%, indicating a possible upward reversal for LINK. 

Source: TradingView

This suggested a favorable entry point for long-term investment in Chainlink, especially as the broader cryptocurrency market is expected to grow.

Declining LINK balance on exchanges

On-chain data from Coinglass revealed a decreasing balance of LINK on all exchanges, likely due to the market crash and the ongoing correction phase in altcoins. 

This decline suggested a potential rebound for Chainlink. Typically, when an asset’s exchange balance drops, it indicated that large financial institutions may start buying, anticipating an upward move. 

Source: Coinglass

The low balances often signal that a price reversal could be imminent, making it an opportune time for investment as Chainlink, along with other altcoins, is poised for recovery.

The 180-day low indicator for altcoins 

Last week’s sharp sell-off may have marked the crypto market’s mid-cycle pullback low, as suggested by the 180-day low indicator, indicating that altcoins have likely bottomed out. 

Read Chainlink’s [LINK] Price Prediction 2024-25

However, it is wise to wait for broader market confirmation before declaring a recovery. The advance/decline line (ADL), which tracks the cumulative performance of the top 40 assets, still shows weak momentum. 

Source: TradingView

Despite this, now may be an opportune time to invest in Chainlink (LINK) for the long term, as prices could be at their lowest point in the cycle.