• After the Fed’s rate cut, Chainlink jumped to over $11, supported by a rise in the average coin age of 90 days.

  • Strong buying pressure is pushing LINK higher with a potential short-term target of $12.98.

  • However, if the LINK price fails to clear the $11.86 resistance, a correction to $9.25 is possible.

Chainlink (LINK) price has risen to over $11 following the recent rate cut by the Federal Reserve. The rally has sparked renewed speculation about the token’s short-term prospects.

Chainlink’s 90-day average coin age (MCA) has also risen following the recent rate cut. MCA reflects the average age of tokens in circulation, and a lower MCA indicates that previously inactive tokens are being moved from cold wallets, which could lead to a sell-off and put downward pressure on prices.

Conversely, rising MCA indicates that investors are holding tokens and reducing trading activity, which is generally indicative of a long-term holding strategy. In Chainlink’s case, the surge in MCA suggests that many investors are choosing to leave their LINK tokens idle or move them into self-custody, alleviating selling pressure.

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In addition to the increase in coin age, the 4-hour LINK/USD chart also shows a surge in cumulative volume delta (CVD), a key indicator of market sentiment. Each bar on the CVD shows whether the market is dominated by buying or selling activity. Red bars indicate selling pressure, which could push prices down.

Taking LINK as an example, the chart shows five consecutive green bars, indicating that buying pressure persists. This shows that the market demand for LINK is growing, which may support its continued rise.

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The daily chart shows that Chainlink is holding strong at the $10.02 support level, which played a key role in its recent breakout above the $10.83 resistance level. Currently, LINK is trading at $11.30 and is not seeing any major resistance to halt the uptrend.

Using Fibonacci retracement levels to assess potential price targets, the next possible move for LINK could be to $11.86, which is equivalent to the 38.2% Fibonacci level. If this is broken, the next target could be around $12.98, a level that seems within reach given the current momentum.

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However, if the cryptocurrency fails to break out of $11.86, a correction could occur. If that happens, LINK could drop to $9.25.