Chainlink (LINK) is currently at a critical juncture, undergoing a retest of its demand zone and downtrend line.
Written by Ariela - Last updated on 01/10/2025 at 14:31 by Ariela
Currently, Chainlink (LINK) is trading at $20.39, showing a weekly decline of 6.40%. Despite this downturn, retail investors’ and “smart money” sentiments remain generally positive, offering hope for a potential recovery.
The current price action suggests that LINK is at a crossroads. After testing the demand zone around $20, the price has remained relatively stable, indicating a possible accumulation phase.
However, the $24 resistance level represents a critical barrier to overcome for the bullish momentum to resume. A successful breach of this level could pave the way for a significant rise towards $32, signaling a significant shift in market sentiment.
Conversely, if the price fails to hold within the demand zone, LINK could experience further downside, testing the patience of its holders. Therefore, the next trading sessions will be crucial for the future direction of LINK.
The latest on-chain data has revealed increasing activity within the LINK ecosystem, providing a positive outlook for the network’s health.
However, sustained growth in these areas will be crucial to maintain the network’s long-term strength and price stability.
Data on net exchange flows have revealed a dominance of outflows, with a 3.80% increase in the last 24 hours. This indicates a decrease in selling pressure, aligning with potential accumulation trends.
Historically, such trends have often preceded bullish price movements. However, sustained outflows will be necessary to confirm this pattern and propel LINK prices upwards.
Considering the technical setup, increasing address activity, and net outflows, the crypto token LINK is well-positioned for a bullish breakthrough if it surpasses the $24 resistance level.
A rally towards $32 then becomes conceivable, but maintaining the demand zone will be crucial to support the positive momentum. Thus, LINK appears well-positioned for growth, provided the market backs this bullish breakthrough.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Ariela is one of the main editors of the news shared daily on InvestX. With 8 years of experience in writing, she writes articles on the topics that mark the crypto market each day.
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