Oct 31, 2024
6thTrade
Chainlink's price has been struggling to secure a close above the $12 mark as it attempts to recoup losses from the sharp decline in late July. Despite these challenges, LINK seems positioned for a potential breakout, driven by rising investor optimism. With renewed interest in this altcoin, Chainlink’s price could be gearing up for a significant upward move.
Optimism Around Chainlink
Market sentiment around Chainlink remains steady, with the Mean Coin Age (MCA) showing a continuous increase despite volatile price movements. This upward trend in MCA indicates that long-term holders (LTHs) are retaining their assets instead of selling or relocating them.
Such behavior among LTHs reveals strong confidence in Chainlink’s potential, as these investors appear willing to endure short-term market fluctuations in pursuit of long-term gains. The increasing MCA suggests a stable accumulation phase among holders, bolstering positive sentiment for Chainlink. With more investors choosing to hold, Chainlink strengthens its foundation for potential growth.
Potential Breakout and Price Targets for Chainlink
An analysis suggests that if Chainlink manages to break out of its macro bullish pattern, it could aim for a target around $19. To achieve this, however, the altcoin would first need to establish $13 as a support level to pursue a substantial 53% rally.
Chainlink’s recent 6% gain over the past 24 hours places it near a crucial target of $12.15, coinciding with the 50% Fibonacci Retracement level, which has been a significant barrier. Securing a close above $12.15 would bolster a bullish perspective for the altcoin.
In the broader timeframe, analysts anticipate a potential 50% rally if Chainlink can hold above the 50% Fibonacci level, positioning itself for a climb to the 61.8% Fib level at $12.78. Breaking through this level could strengthen Chainlink’s upward momentum, bringing it closer to a more substantial rally.
Key Levels to Watch
On the downside, should Chainlink fail to exceed the $12.15 resistance, a drop to $11.52 becomes likely. Such a move could drive LINK down to $10.75, aligning with the 23.6% Fibonacci Retracement level and weakening the current bullish outlook.
Images credit : Santiment - Chart by Tradingview
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.
