Chainlink (LINK) price is currently trading below the $12.35 resistance, a key barrier preventing the cryptocurrency from flipping the $13.00 level into support.
LINK has been under selling pressure in recent weeks, although the current low profit-taking volume suggests that a breakout could occur soon. If Chainlink can maintain momentum and break above this resistance, it could be poised for a significant rally.
Chainlink Is Looking at Growth
The macro momentum for LINK price suggests a strong move is possible, with the Bollinger bands almost tightening. Tightening Bollinger bands coupled with low trading volume usually predicts a significant price move, either up or down.
For LINK, this could translate into a bullish rally if the indicatorâs baseline remains below the candles, signaling bullish momentum. If Chainlink can maintain its current position within the Bollinger bands and avoid a downside breakout, the likelihood of a strong rally increases.
This bullish outlook is supported by the number of short-term Chainlink holders currently holding less than 2.9% of the total circulating supply, which is a 16-month low, last seen in May 2023.
These investors, who typically hold for less than a month, tend to sell during price increases. However, their reduced supply reduces the risk of a significant sell-off that could negatively impact LINK price.
With a small portion of the total supply in the hands of short-term holders, their potential impact on the market is limited. This reduced influence provides a more solid foundation for Chainlink's price to rise without the risk of being disrupted by a sudden sell-off.
LINK Price Prediction: Ready for a Breakout
Chainlink is currently trading at $10.66, just below the local resistance at $10.79. This resistance-to-support conversion is crucial for LINK to attempt a break above the $12.35 barrier. This could create an opportunity for a potential rally.
If Chainlinkâs momentum continues, the price could rise to $12.94. A break above this level would mark a six-month top for the altcoin as it targets $13.00, resulting in a 15% gain. A successful breakout above this level could further fuel bullish sentiment in the market.
However, failure to break above $12.35 could result in LINK continuing to move within a tight range. The altcoin could get stuck below this resistance while hovering above $9.35, as it has been doing for the past six weeks, invalidating the bullish outlook.
