Tracking Chainlink’s recovery: Key support holds as traders stay bullish

• LINK has formed a double-bottom pattern within a demand zone, as identified by the IOMAP data.
• Additionally, analysis of traders’ activities reveals a surge in large transactions and a decline in NetFlow.

Despite a predominantly bearish trend, with a 9.13% decline in the last 24 hours, the ongoing market caution and increased activities could position Chainlink [LINK] for an upcoming surge in value.

AMBCrypto has analyzed LINK’s potential path to the upside in the coming trading session, highlighting key levels to watch.

Chainlink enters bullish territory following key support level formation

LINK’s recent price drop has led to the formation of a double-bottom pattern, a bullish chart formation where the price touches the same low at different times before moving upward.

For LINK, this pattern emerged at $10.84, and subsequently, the price began to ascend. This level aligns with a significant demand zone as identified by the In and Out of Money Around Price (IOMAP) from IntoTheBlock.

Source: IntoTheBlock

The IOMAP data indicates that the support level ranges between $10.85 and $10.51, where over 10.24 thousand buyers have placed orders for 15.95 million LINK.

This concentration of buying activity suggests that LINK is currently in an accumulation phase, setting the stage for potential price increases moving forward.

Traders maintain bullish stance on LINK

Recent data from IntoTheBlock reveals that traders are continuing to exhibit bullish behavior towards LINK, driven by trends observed in Exchange Netflow and large transactions.

Over the past week, there has been a notable outflow of LINK from cryptocurrency exchanges, amounting to a negative 386.67 thousand LINK. This trend indicates growing confidence among market participants that LINK’s price will rise.

Source: IntoTheBlock

Simultaneously, the number of large transactions exceeding $100,000 has increased, reaching a seven-day peak of 196 transactions. 

This activity suggests that major LINK holders, often referred to as ‘whales,’ are actively accumulating more LINK, reinforcing the bullish market sentiment.

Predicting LINK’s next move: A trend up or down?

As LINK navigates current market conditions, the next target level, assuming the demand level on the chart holds and sentiment remains bullish, is projected at $12.98.

Read Chainlink’s [LINK] Price Prediction 2024–2025

Conversely, if the demand zone fails, buying pressure diminishes, and LINK breaches this critical support level, it faces the risk of falling to a lower price point of $9.28.

Source: Trading View

A significant shift to a bearish stance could be triggered if the overall market turns negative, particularly if Bitcoin leads a downward trend.