Chainlink: $29 could be in sight again, but first, LINK must…
The Chainlink 1-day price chart showed a range formation between $10.8 and $15.5.
- Chainlink investors have reason to be cautiously optimistic due to accumulation in recent weeks.
- The trend of Bitcoin could dictate LINK’s short-term movements and potentially hurt a rally.
Chainlink [LINK] witnessed a slight reduction in exchange reserves, indicating decreased sell pressure. On the 1-day chart, the token was noted to have a bullish trend, according to the SuperTrend indicator.
The Net Unrealized Profit/Loss metric sank to capitulation levels in the first week of April. At that time, LINK was trading at $11. Since then, the metric’s movement has been reminiscent of the August-September 2024 stretch.
That period marked a local market bottom before a sizable rally propelled Chainlink prices to $29. The NUPL highlighted that bearish sentiment was prevalent.
Should investors expect another rally in the coming months?
The chances of a Chainlink recovery are good
The 7-day Moving Average of the Net Transfer Volume to/from Exchanges metric has been showing red since the final week of March. These negative values denote LINK flow out of exchanges, and tie in with the exchange reserve reduction noted earlier.
The steady flow of Chainlink tokens from the exchanges indicated an investor’s desire for HODL. This was a bullish sign, but it does not promise an immediate rally.
Data from IntoTheBlock revealed a drop-off in large transactions over the past three weeks. Combined with the LINK flow out of exchanges, it reinforced the idea of reduced selling pressure from large players and steady accumulation.
At the same time, it also showed that whales were hesitant to buy and were waiting for clearer market trends to exploit. Investors have reason to be cautiously bullish in the long term.
The 1-day price chart showed a range formation between $10.8 and $15.5. Over the past ten days, Chainlink witnessed rejection from near the range highs and was falling toward the mid-range support at $13.18.
Yet, since March, the OBV has been trending higher, signaling increased buying volume. An OBV uptrend during an extended consolidation phase is bullish for Chainlink, and promises a rally beyond the range highs in the coming weeks.
