Despite the recent downward pressure, Chainlink is holding support around $21, which could serve as a base for a rally toward the $32 resistance level.
Chainlink has seen increased on-chain activity, including a rise in active addresses and transaction volumes.
Chainlink’s (LINK) recent activity in the crypto market has gained quite a lot of attention, with substantial shifts in token movements and on-chain metrics hinting at possible price volatility. In the last 48 hours, nine new whale wallets withdrew a combined 362,380 LINK tokens valued at approximately $8.19 million from Binance. This surge in large-scale accumulation has fueled speculations about a possible bullish breakout for the token.
🔶Chainlink Price Analysis: Is $32 Target Next?
Despite the heightened interest, Chainlink’s price has faced downward pressure. As of this writing, LINK is trading at $22.11, representing a 2.82% gain over the past 24 hours. This indicates that the weekend downturn was temporary as the token approaches key technical levels that could define its next price trajectory.
The Chainlink price has retreated since climbing to a high of $32 in November, finding support in the $21 range. This zone is important for the token, as it may act as a base for a potential rebound. If LINK can hold this support, it could initiate a fresh rally toward its resistance level at $32.
On the flip side, failure to sustain this critical support could result in further declines, pushing LINK to test lower levels. Market participants are closely watching these price movements as they are likely to determine the token’s immediate trend.
Currently, derivatives data suggests a positive picture for Chainlink’s price. According to Coinglass data, the LINK open interest has surged 3.89% to $555.64 million in the last 24 hours, indicating a bullish sentiment among traders.
🔶Increasing On-Chain Activity Fuels Optimism
On-chain activity for Chainlink has grown significantly, reflecting investor confidence. Transaction volumes within the last day increased by 0.76% to 10,000 transactions. This indicates improved market participation and tends to occur during periods of elevated price volatility.
At the same time, active addresses in the network increased by 0.83% and reached 5,700. That reflects increased involvement with the Chainlink ecosystem, which is very often a sign of higher adoption and stronger market demand, as reported by CNF.
Furthermore, exchange reserves for LINK have been down by 0.26% in the last 24 hours, standing at 161.5 million tokens. Reducing exchange reserves is a good signal since it indicates decreased selling pressure. This suggests that holders are moving coins off exchanges, possibly into longer-term storage, thereby bolstering the argument for a bullish breakout.
With the accumulation of whales, growing transactions, increasing active addresses, and decreased exchange reserves, the future appears bright for Chainlink. If the token can hold on to its crucial support at $21, it could quickly breach its resistance at $32. This could set the stage for a renewed uptrend in the near term, with optimistic analysts offering a target of up to $300 for LINK.