Chainlink (LINK) breaks above key levels, signaling bullish momentum. Will it hit the $20 mark soon?
- Chainlink’s price shows bullish signs after breaking resistance; next targets are $19.14 and $20.00. LINK’s rising transactions and bullish MACD signal growing market interest, but momentum remains cautious.
Chainlink [LINK] was showing a bullish outlook after breaking above a key descending trendline, suggesting a potential continuation of its upward momentum.
Trading at $12.79 at press time, LINK has seen a 4.50% price increase in the last 24 hours and a 9.73% gain over the past seven days.
With a circulating supply of 630 million LINK, the cryptocurrency’s market cap stands at $8.02 billion, supported by a 24-hour trading volume of $565.3 million.
Key resistance levels to watch
The immediate focus for LINK is sustaining its momentum above the $13.00 mark, which would keep the bullish trend intact.
A successful move toward the $19.14 resistance level could signal further strength, with potential targets extending to $20.00 and beyond if buying pressure continues.
These levels are seen as critical milestones that could define LINK’s near-term price trajectory.
Source: TradingView
Technical indicators on the 4-hour chart suggest that LINK is trading near the upper Bollinger Band at $11.589, indicating short-term bullish momentum.
However, the middle band at $11.332 acts as immediate support, while a decline below this level could lead LINK towards the lower band at $11.076.
This positioning shows a balance between buying interest and the potential for downside if support fails.
Moderate bullish momentum, confirmed
The Relative Strength Index (RSI) was at 56.46, slightly above the neutral 50 level, suggesting moderate bullish momentum.
This indicated that while there is room for further price increases, the current buying pressure is not overly strong, hinting at the possibility of short-term consolidation.
The RSI level highlights that LINK’s price could still advance, but may face challenges without a stronger push from buyers.
Source: TradingView
The Moving Average Convergence Divergence (MACD) indicator shows a slight bullish crossover, with the MACD line just above the signal line at 0.069.
This setup points to weak but positive momentum, suggesting potential for continued gains if the lines continue to diverge.
However, the proximity of the MACD and signal lines indicates that caution is warranted, as momentum could shift quickly.
Positive trends
Recent on-chain data reveals an increase in Chainlink’s transactional activity, with 17.56k transactions recorded in the week of the 16th of September, a notable rise from the 7-day average of 2.58k transactions.
While this increase points to growing interest, the press time transaction levels remained below the highs seen during mid-2021.
Source: IntoTheBlock
Derivatives data from Coinglass reflected increased market activity, with trading volume rising 14.57% to $420.62 million and Open Interest up 6.94% to $204.09 million.
These trends underscored the growing engagement in LINK’s market, supporting its current price movements and outlook.
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