Chainlink (LINK) price is currently trading below the $12.35 resistance level and this is the main barrier preventing the cryptocurrency from flipping the $13 level into support.

Although LINK has faced selling pressure in recent weeks, the current low profit-taking volume suggests that a breakout could be imminent. If Chainlink maintains its bullish momentum and breaks above the aforementioned resistance, it could be poised for a significant rally.

Chainlink is Heading for a Bull Run

The macro momentum for LINK price suggests a potential strong move in the future, with Bollinger Bands about to squeeze. Bollinger Bands squeeze coupled with low trading volume typically precedes significant price movements, either to the upside or downside.

For LINK, this could translate into bullishness if the indicator’s baseline remains below the candle, signaling bullish momentum. If Chainlink can maintain its current position within the Bollinger Bands and avoid a downside breakout, the likelihood of a spike is higher.

Chainlink Bollinger Bands | Source: TradingView

This bullish outlook is further supported by the fact that short-term LINK holders currently hold less than 2.9% of the total circulating supply, a 16-month low last recorded in May 2023. These investors typically hold for less than a month, and tend to sell during price rallies. However, their reduced supply reduces the risk of a significant sell-off that could negatively impact LINK price.

With such a small percentage of the total supply in the hands of short-term holders, their potential to disrupt the market is limited. The reduced influence creates a more solid foundation for Chainlink's price to rise without the risk of a sudden sell-off that could send prices plummeting.

Short-term LINK holdings | Source: IntoTheBlock

LINK Price Prediction: Ready to Break

LINK is currently trading at $10.68, just below the local resistance at $10.79. Flipping this resistance level into support is crucial for the price to attempt to break the $12.35 barrier. This could set the stage for a potential rally.

If the bullish momentum continues, the price could rise to $12.94. A break above this level would mark a 6-month high as it targets $13, resulting in a 15% increase. A successful break above this would further fuel bullish sentiment in the market.

LINK Price Analysis | Source: TradingView

However, failing to break above $12.35, LINK will continue to fluctuate within the range. LINK could remain stuck below this resistance while hovering above $9.35, as it has been doing for the past 6 weeks, invalidating the bullish outlook.

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