Chainlink (LINK) Price Jumps 7.5%, This Breakout To Trigger Major Rally

Oracle service provider Chainlink has decoupled majorly from the broader market correction with more than 6% in the last 24 hours. As of press time, the Chainlink (LINK) price is trading closer to its crucial resistance of $17.5 with its market cap crossing $10.1 billion. Moreover, the daily trading volume for LINK has also surged by 80% moving all the way to $858 million.

Chainlink On-Chain Data Flashes Bullish Signal

According to insights from on-chain data provider Santiment, Chainlink (LINK) has emerged as a standout performer within the cryptocurrency market, surging past the $17.50 mark for the first time in six weeks.

Today’s on-chain analysis reveals a striking trend: for every one Chainlink transaction recorded at a loss, there are 11 transactions showing a profit. This remarkable ratio marks the highest level observed since December 8, 2022, suggesting a strong bullish sentiment surrounding Chainlink’s recent price movements.

This Breakout Can Trigger Major Surge for LINK Price

The current Chainlink price is encountering resistance attributed to a daily bearish order block, where significant market participants have historically placed sell orders at $17.58.

This resistance level coincides with the weekly resistance barrier at $16.48. Failure of buyers to drive the LINK price higher could potentially trigger a retracement. In such an event, analysis from the volume profile indicator suggests that a significant volume of trades occurred around $14.62, indicating potential support for the anticipated correction.

Notably, this level closely aligns with the 61.8% Fibonacci retracement level, presenting an attractive accumulation zone for a potential second bullish leg.

The recent surge in bullish sentiment following the approval of an Ethereum spot ETF has heightened optimism. Should Chainlink find support around $14.62, it could signal an 18% rally to retest the $17.58 daily order block. In a highly optimistic scenario, a successful breach of this resistance level could propel the Chainlink price to $22, marking a total gain of 50%, amid Chainlink whale accumulation.

Even with robust technical analysis and on-chain data supporting Chainlink’s potential, a weekly candlestick close below $13.59 would negate the bullish outlook by forming a lower low on a higher timeframe. Such a scenario could result in a 13% decline in LINK price, potentially leading it towards a critical support level at $11.80.

Additionally, the on-chain data also shows improvement for Chainlink. There has been a significant surge in the number of active addresses within the Chainlink network, rising from 2,900 on May 18 to 11,300 on May 21. This notable increase indicates a growing demand for the Chainlink platform.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.