Chainlink (LINK) price is currently trading below the $12.35 resistance level, which has been a key barrier preventing the cryptocurrency from turning $13.00 into support.
Although LINK has faced selling pressure in recent weeks, current low profit-taking volume suggests a breakout could be coming soon. If Chainlink can maintain its momentum and overcome this resistance, it could be poised for a significant rally.
Chainlink Expects Growth
LINK price macro momentum suggests a potentially sharp move on the horizon, with Bollinger Bands heading towards a squeeze. A Bollinger Band compression along with low transaction volume usually precedes a significant price move up or down.
For LINK, this could lead to higher prices if the indicator’s baseline remains below the candles, signaling bullish momentum. If Chainlink can maintain its current position within the Bollinger Bands and avoid a downside breakout, the likelihood of an upward surge will increase.
Read More: How to Buy Chainlink (LINK) and Everything You Need to Know
This bullish outlook is reinforced by the fact that short-term Chainlink holders currently hold less than 2.9% of the total outstanding supply, which is a 16-month low last seen in May 2023. These investors, who typically hold stocks for less than a month, tend to sell when prices rise. However, reducing their supply minimizes the risk of a significant sell-off that could negatively impact LINK’s price.
Since such a small percentage of total supply is in the hands of short-term holders, their potential to disrupt the market is limited. This reduction in influence provides a stronger basis for Chainlink’s price to rise without the threat of sudden sell-offs that could cause it to fall.
LINK Price Forecast: Ready to Hack
Chainlink is currently trading at $10.66, just below local resistance at $10.79. Converting this resistance into support is critical for LINK as it attempts to break through the $12.35 barrier. This could set the stage for a potential rally.
If Chainlink’s trend continues, the price could rise to $12.94. Breaking through this level would mark a six-month high for the altcoin as it would hit $13, resulting in a 15% gain. A successful break above this point could strengthen the bullish sentiment in the market.
Read more: Chainlink (LINK) Price Prediction for 2024/2025/2030
However, failure to break above the $12.35 level could result in LINK continuing to move within a range. The altcoin could remain trapped by this resistance, hovering above $9.35 as it has for the past six weeks, invalidating bullish forecasts.
