Will Chainlink (LINK) price reach $32 as sellers control the $27 to $29 zone amid rising optimism?
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 $18.67 24h volatility: 6.9% Market cap: $12.98 B Vol. 24h: $1.27 B 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.
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.
Currently, 80% of $LINK holders are in profit, a figure that matches the December highs.
On-chain data indicates significant resistance levels at $27 and $29, in line with where the asset's price faced resistance last year. pic.twitter.com/N2DgNhL34l
— IntoTheBlock (@intotheblock) January 22, 2025
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.
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