Chainlink price movement has been on investors’ radar recently as technical chart setup shows a further rally to $50. On the weekly chart, LINK is trading 12% up while eyeing the spot in the top ten crypto list. The drop in the LINK supply on the exchanges can further aid to the price rally ahead.
Will Chainlink Price Rally 100% From Here?
After forming a bottom at $18 on January 13, the Chainlink price shot up by 50% moving all the way to $27. However, amid the broader crypto market sell-off, the LINK price is trading 5.85% down at $24.38 as of press time.
Prominent cryptocurrency analyst Ali Martinez has highlighted a significant bullish breakout for Chainlink (LINK), suggesting the token is on track to reach $50. “Chainlink (LINK) is in the middle of a bullish breakout, targeting $50!” Martinez shared in a recent post.
Source: Ali Martinez
LINK Testing Key Support Levels
However for the breakout to happen, the Chainlink price needs to break out of the narrow range of $24-$27. After three consecutive days of rally, LINK faced rejection at the resistance level of $27.14. Moreover, with a strong pullback of over 5.5% today, LINK is once again testing the support at $24.128.
A bullish breakout above the $27.14 resistance level, as indicated by trend-based Fibonacci levels, could propel the price toward the 61.80% level at $32.027, representing an upside potential of approximately 32%.
Source: TradingView
Conversely, a bearish close below $24.128 might trigger a decline to the 50 EMA line at $21.97, presenting a downside risk of 15.15%.
On-Chain Metrics And Key Development
Blockchain analytics platform Santiment has reported that two key on-chain metrics are signaling bullish momentum for the Chainlink price. Over the past month, the supply of LINK on exchanges has dropped by 0.95%, indicating reduced selling pressure as investors move tokens off trading platforms.
On the other hand, the average age of LINK in wallets has decreased by 6.3%, suggesting increased activity and a potential shift toward accumulation by holders.
Source: Santiment
Additionally, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) continues to see more demand. Blockchain platform Sonic Labs has officially announced the deployment of Chainlink’s CCIP while equipping developers with advanced tools to enable cross-chain token transfers and messaging capabilities.
Using CCIP, Sonic Labs aims to facilitate seamless interoperability, empowering the creation of high-performance decentralized finance (DeFi) applications.
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