Chainlink’s LINK token is about to break above the critical resistance level of $18, signaling the potential for a significant price increase backed by strong adoption and technical momentum.
Recent trading action suggests that LINK has broken out of a prolonged downtrend, with an increase in on-chain transactions and a decrease in selling pressure supporting a possible rally towards the $35 level.
According to COINOTAG, “LINK’s total transaction value growth reportedly reached $17.3 trillion, highlighting its growing importance and investor interest in the blockchain ecosystem.”
Chainlink’s LINK token is preparing for a potential breakout as it approaches the $18 level, supported by technical indicators that show rising adoption and bullish momentum.
LINK Breaks $18: First Step Towards $35 Target
LINK’s recent price action suggests that the token is entering a strong bullish phase. Having successfully cleared the $15.44 resistance level, LINK is currently facing its next major hurdle at $18.
Significantly, the price has broken out of a prolonged downward channel, signaling a change in market sentiment.
Breaking above $18 would pave the way for LINK to reach its next major target of $35. This level represents a 101.6% increase from current prices, highlighting the importance of maintaining momentum. LINK’s technical indicators provide a solid foundation to support a continued rally. The 9-day and 21-day moving averages recently crossed into the bullish crossbar, confirming its bullish momentum.
Also, the MACD indicator remains positive; the MACD line is located above the signal line and the histogram is expanding steadily.
These signals increase the likelihood that LINK will soon surpass $18 and continue its rise. The increase in daily active addresses for Chainlink also stands out as a promising development. On November 23, active addresses rose to 7,417, indicating increasing user interaction and interest in the Chainlink ecosystem.
This increased participation is supporting the token’s price appreciation; a rise in demand generally strengthens market confidence. Therefore, adoption trends continue to support the bullish outlook for LINK. Furthermore, the decline in exchange reserves strengthens the bullish outlook for Chainlink.
Exchange reserves have decreased by 0.13% over the past 24 hours, falling to 161.37 million tokens. This indicates that selling pressure is easing and fewer tokens are being transferred to exchanges, reducing the likelihood of a major sell-off. This metric is in line with the technical outlook for further gains.
In conclusion, Chainlink’s strong technical indicators, increasing on-chain activity, and decreasing selling pressure suggest that it is positioned for a rally not only above the $18 resistance level but also towards the $35 target. The alignment of these metrics points to a sustained bull trend, and as momentum continues, a push to $35 becomes increasingly likely.
