Chainlink (LINK) price is currently trading under the $12.35 resistance level, which has been a key barrier in preventing the cryptocurrency from flipping $13.00 into a support floor.
While LINK has faced selling pressure in recent weeks, the current low volume of profit-taking suggests that a breakout could occur soon. If Chainlink can sustain its momentum and overcome this resistance, it could be poised for a significant rally.
Chainlink Is Looking at a Rise
The macro momentum for LINK price suggests a potentially sharp move on the horizon, with Bollinger Bands nearing a squeeze. Bollinger Band squeezes along with low transaction volume, typically precede a significant price movement, either upward or downward.
For LINK, this could translate into a price rally if the base line of the indicator remains below the candlesticks, signaling bullish momentum. If Chainlink can maintain its current position within the Bollinger Bands and avoid a downward break, the potential for an upward surge increases.
Read More: How To Buy Chainlink (LINK) and Everything You Need To Know
This bullish outlook is backed by the Chainlink’s short-term holders currently holding less than 2.9% of the total circulating supply, a 16-month low last seen in May 2023. These investors, who typically hold for less than a month, are prone to selling during price rallies. However, their reduced supply minimizes the risk of a significant sell-off that could negatively impact LINK’s price.
With such a small percentage of the total supply in the hands of short-term holders, their potential for market disruption is limited. This reduced influence offers a stronger foundation for Chainlink’s price to rally without the threat of sudden sell-offs driving it downward.
LINK Price Prediction: Ready for a Breach
Chainlink is currently trading at $10.66, just below the local resistance of $10.79. Flipping this resistance into support is crucial for LINK to attempt a breach of the $12.35 barrier. This could set the stage for a potential rally.
If Chainlink’s momentum continues, the price could rise to $12.94. Breaching this level would mark a six-month high for the altcoin as it targets $13.00, resulting in a 15% rise. A successful break above this point could fuel further bullish sentiment in the market.
Read More: Chainlink (LINK) Price Prediction 2024/2025/2030
However, failure to breach $12.35 could result in the continued rangebound movement for LINK. The altcoin may remain trapped under this resistance while hovering above $9.35, as it has been for the past six weeks, invalidating the bullish outlook.
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