Chainlink Price Analysis: $27 Resistance in Focus as Bulls Eye $32

Will Chainlink (LINK) price reach $32 as sellers control the $27 to $29 zone amid rising optimism?

Vishal Dixit By Vishal Dixit Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Chainlink Price Analysis: $27 Resistance in Focus as Bulls Eye $32
Photo: Shutterstock

Key Notes

  • Chainlink price chart highlights a bullish reversal, with a potential 32% upside to $32 if $27 resistance is broken.
  • Derivatives data shows a 0.20% rise in open interest, with bullish recovery despite a 0.9516 long-to-short ratio.
  • On-chain analysis reveals 80% of holders in profit, with $27 and $29 levels presenting significant resistance.

As Donald Trump‘s World Liberty Financial showcases a growing interest in DeFi tokens, Chainlink has been degrading momentum. Over the past 24 hours, the Chainlink market price LINK $17.50 24h volatility: 8.8% Market cap: $11.18 B Vol. 24h: $667.50 M has increased by 28.18%, reaching a market cap of $16.50 billion.

Chainlink has reached the $25 psychological zone, becoming the 11th biggest cryptocurrency in the market.

Chainlink Analysis Reveals 32% Upside Potential

In the daily chart, the Chainlink price action showcases a bullish reversal from the $19.24 support zone. Bouncing off from the 100 EMA line, the Chainlink price recently challenged the $27.14 resistance level.

CRYPTO:LINKUSD Chart Image by Trojan1234

After three consecutive bullish days, the Chainlink price action marks an intraday pullback of 2.84%, creating a bearish candle at a crucial resistance. This warns of a pullback to the next support level.

Currently, Chainlink trades at a market price of $25.897, projecting a potential pullback to the 23.6% Fibonacci level at $24.128. Despite the intraday pullback, the prevailing bullish trend has avoided a bearish crossover between the 20 and 50 EMA lines. This helps sustain a positive alignment in the crucial EMAs.

Furthermore, the daily RSI line is nearing the overbought boundary zone. Thus, the technical indicators are maintaining a positive outlook for Chainlink. Using the trend-based Fibonacci levels, a bullish breakout above the $27.14 resistance level will likely challenge the 61.80% level at $32.027.

Hence, the price action analysis reveals an upside potential of nearly 32%. On the flip side, a bearish closing under $24.128 will likely test the 50 EMA line at $21.97. Hence, the downside risk remains at 15.15%.

Chainlink Speculations Surge with Open Interest Crossing $1B

Amid the positive bullish outlook over the price action analysis, the derivatives market witnesses an increase in bullish speculations. The Chainlink open interest has recently surged by 0.20% to reach $1.14 billion.

Amid the increasing speculations, the long-to-short ratio over the past 24 hours has improved to 0.9516. Although it reflects a higher number of bearish positions, the recovery over the past few weeks comes as a bullish sign.

However, the OI-weighted funding rate remains at a stagnant level of 0.010%. This maintains an overall similar outlook from Chainlink traders to maintain their bullish positions. Hence, the derivatives analysis sustains an overall positive outlook and supports the price action analysis.

80% LINK Holders Remain “in the Money”

Amid the gradually increasing bullish optimism, the recent X post from IntoTheBlock reveals that 80% of Chainlink holders are in profit. This figure matches the December highs reflecting the previous swing highs.

Furthermore, the on-chain data indicates significant resistance levels at $27 and $29. Since this is the level where the LINK token price faced resistance last year, a bullish breakout above this will shape an upcoming bullish trend.

With strong technical and on-chain signals, Chainlink shows promise for a sustained bullish rally. A breakout above $27 could pave the way for a $32 target, while support at $24 will remain critical in preventing further pullbacks. The market’s focus on derivatives and whale activity will likely shape LINK’s next move.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Vishal Dixit
Author Vishal Dixit

Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.

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