Breaking above $15.30 could propel Chainlink towards $17 – Explaining the potential growth for LINK.

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Breaking above $15.30 could propel Chainlink towards $17 – Explaining the potential growth for LINK.

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Chainlink, represented by its token LINK, has been slowly gathering momentum after a period of sideway movement, setting the stage for a potential breakout. Currently trading at $15.02, a 0.55% increase from the previous day, Chainlink is testing the waters above the $15.30 resistance.

With multiple technical indicators and on-chain signals favoring the bulls, a breakout above the current consolidation zone is a possibility. However, full confirmation is dependent on a decisive breakout and sustained strength above the $15.30 mark.

A peek at Chainlink's technical setup

The formation of an inverse head-and-shoulders pattern on the 4-hour chart positions LINK for a potential trend shift if prices clear the resistance at $15.30. Furthermore, the 9 EMA crossing above the 21 EMA indicates short-term momentum strength, supporting the idea that bulls are reclaiming the upper hand.

However, LINK needs to breach the neckline of this pattern to validate this setup. A rejection at the neckline may cause a prolonged consolidation within the range of $14.50-$15.30.

Flip-flopping exchange trends

Digging into exchange metrics, we see a complicated narrative. Over the last seven days, exchange reserves have shrunk by 1.03%, suggesting reduced selling pressure. Long-term outlook becomes less bearish as a result.

On the other hand, exchange netflows spiked 37.46% in the past 24 hours, signaling increased deposit activity. Sudden influxes of deposits may result in increased near-term selling pressure.

Encouraging on-chain indicators

On-chain metrics underscore positive developments. Transfer volume increased 73.2% over the last 24 hours, displaying heightened coin movement. The number of active addresses also rose by 11.06%, indicating more wallet engagement.

These metrics indicate improving user participation. However, the total transaction count dropped slightly by 2.33%, which might be due to temporary consolidation rather than waning interest.

LINK's derivatives market exhibits a moderate bullish sentiment. The current Funding Rate is at 0.0090%, suggesting longs outnumber shorts, yet the leverage isn't excessively high. This balanced speculative pressure is favorable, as it limits the possibility of sudden liquidations.

Traders remain confident but not overly aggressive, creating a positive environment for the short term.

The road to confirmation?

A fresh buy signal from the SuperTrend indicator on LINK's daily chart, as highlighted by Ali Charts, bolsters the ongoing bullish setup seen in lower timeframes. This signal strengthens the possibility of an extended move higher.

If LINK settles above the $15.30 neckline, the confirmed SuperTrend shift could verify a broader market reversal. The alignment of trend indicators and structure increases the likelihood of breakout confirmation in the upcoming sessions.

Conclusion

Chainlink seems poised to uphold a breakout, provided it does so decisively above the $15.30 neckline. The alignment of bullish technical patterns, moving average crossover, rising on-chain activity, and confirmed SuperTrend buy signal bolster the breakout thesis.

Although short-term exchange inflows cast a hint of caution, the broader perspective continues to favor upward momentum. If the breakout is confirmed, a rally toward the $17 mark appears plausible.

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As Chainlink, represented by its token LINK, tests the waters above the $15.30 resistance at $15.02, a potential breakout is a possibility, with multiple technical indicators and on-chain signals favoring the bulls.
However, full confirmation of a breakout and sustained strength above $15.30 is dependent on a decisive breakout and the neckline of the inverse head-and-shoulders pattern being breached.
In the derivatives market, the current Funding Rate at 0.0090% suggests longs outnumber shorts, with leverage not being excessively high, creating a positive environment for the short term.
On-chain metrics show improving user participation, with transfer volume increasing, the number of active addresses rising, and the total transaction count dropping slightly.
Encouraging exchange trends include a decrease in exchange reserves, suggesting reduced selling pressure, yet a 37.46% increase in exchange netflows in the past 24 hours indicates increased deposit activity, which may result in increased near-term selling pressure.
A fresh buy signal from the SuperTrend indicator on LINK's daily chart, along with the alignment of trend indicators and structure, increases the likelihood of a confirmed breakout in the upcoming sessions, which, if confirmed, could lead to a rally towards the $17 mark.