Can Chainlink hit $23? Why LINK’s breakout seems closer than ever
Chainlink is set to reclaim its short-term high of $23, as on-chain and technical analysis suggest.
- 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.
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.
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.
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.
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.
