With $30 within reach, LINK’s journey depends on bulls making a timely and strategic move to seize the opportunity before it slips away.
- LINK bulls must flip the $24 resistance into solid support to reinforce a breakout toward $30. Without this crucial move, FOMO may stay subdued.
Chainlink [LINK] kicked off December with a strong start, posting a remarkable 30% surge in just one day, marked by a long green candlestick on its daily chart.
Unlike other assets, LINK has capitalized on Bitcoin’s[BTC] steady climb towards the $100K milestone. Its late entry into the rally is well-timed, as many of its competitors show signs of overheating.
LINK is now just 10.8% away from reaching its 3-year high of $28.50, which occurred in January 2022. With market volatility peaking, the project’s solid fundamentals will be key to pushing LINK past the $30 mark, all while keeping retail FOMO in check.
Buyers must plan their LINK strategy wisely
Compared to its monthly performance, where LINK lagged behind its counterparts, its remarkable 40% jump in the past week has made it a standout performer.
However, weak hands failed to capitalize on the further upside, exiting with significant gains, which led to a notable pullback near $24.
Still, a long road lies ahead. Approximately 17,000 addresses holding around 6.64 million LINK tokens, bought at a minimum price of $24.98, remain in profit, making this price point a significant resistance level.
Source: IntoTheBlock
Therefore, turning this level into solid support will be crucial for a breakthrough to $30. If the price falls below this threshold, it could trigger panic selling.
As the name implies, ‘support’ reflects strong buying interest from institutional investors and bulls. They see this price as a bottom and anticipate significant future gains.
If this strategy plays out, LINK could reclaim a mark it hasn’t tested in the last three years. This will set the stage for massive FOMO.
What odds of this strategy playing out?
From an economic perspective, every sale represents a purchase by someone else. Despite signs of an overheated market causing weak hands to exit in anticipation of a correction, strong demand could easily absorb the selling pressure.
While volume indicators and a bullish MACD crossover support this thesis, bulls have yet to fully confirm it. Notably, over 165 million LINK tokens have been deposited into exchanges, hitting a yearly high.
Source : CryptoQuant
Looking back at LINK’s performance a year ago, the year was dominated by consolidation with a notable bull run in the final quarter, bringing it to around $16. Profit-taking seems like the most logical strategy at this stage.
However, broader market sentiment remains a crucial factor. Unless Bitcoin surpasses $103K to post a new all-time high, altcoins are likely to attract massive liquidity.
The reasoning is straightforward: uncertainty surrounding Bitcoin’s next psychological target prompts investors to diversify their portfolios toward high-cap alts. This serves as a safer hedge against volatility and the high-risk entry points currently associated with BTC.
For LINK to stay ahead, bulls need to treat the current price as a prime buying opportunity, bolstering confidence and setting the stage for a parabolic rise to $30—where significant FOMO could spark.
Conversely, losing the $24 support could trigger panic, pushing sellers to exit at break-even levels. This scenario might lead LINK into a retreat, leaving it vulnerable while its rivals capitalize on market momentum.
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