- Chainlink’s price stabilization at $10 suggests potential growth; RSI indicates possible uptrend from $9.65 support.
- Declining LINK balances on exchanges hint at reduced selling pressure, possibly foretelling an upcoming price surge.
Chainlink’s (LINK) price has been in a state of consolidation since August 5th, oscillating within a narrow range, with notable support around the $10 region. Despite this stagnation, certain market indicators hint at an imminent upward trend for LINK.
The Relative Strength Index (RSI) on the 4-hour chart has shown promising signs of a rebound. Currently nearing the 40% mark, the RSI has formed a double bottom at 39%, suggesting that an upward price correction for LINK might be on the horizon.
This pattern often forecasts a potential reversal, pointing to a favorable moment for investors to consider Chainlink, particularly for those looking at long-term growth prospects.
Moreover, LINK’s balance on exchanges has seen a decline, as per data from Coinglass. This decrease is significant because it typically indicates that fewer tokens are available for trading, which can lead to a price increase if demand remains constant or grows.
The reduction in available LINK on exchanges is particularly noteworthy following a broader market downturn, suggesting that investors are moving their holdings off exchanges, possibly in anticipation of future price increases.
This scenario is reinforced by the market’s reaction to last week’s sharp sell-off, which may have established a mid-cycle low for altcoins, according to the 180-day low indicator. This could mean that the market has reached a turning point, although it remains important to await confirmation from broader market trends.
The Advance/Decline Line (ADL), tracking the cumulative performance of the top 40 assets, still indicates weak momentum, advising caution among investors.
While the current market analysis by ETHNews suggests that Chainlink may continue to consolidate for a short period, the indicators of a potential breakout are strengthening.
If LINK’s price can sustain a movement above the $10.85 mark, it could set the stage for a rally towards the $23 mark, a significant increase that would interest both short-term traders and long-term investors.
While the broader crypto market is yet to fully recover, Chainlink presents a compelling case for investment, especially for those looking to capitalize on potential market corrections and the anticipated upward trajectory.
Chainlink’s Current Trading Range and Indicators
Chainlink (LINK) is currently trading between $9.65 and $10.85. Financial analysts are observing this range, noting that a rise above $10.85 could initiate a bullish trend, pushing the price toward $23.
This projection is partly based on the Relative Strength Index (RSI), which is nearing the 42% mark on the 4-hour chart, a level often associated with potential market rebounds.
On-chain data from Coinglass indicates a reduction in LINK holdings on cryptocurrency exchanges.
This trend suggests that large financial institutions may be acquiring LINK in anticipation of its price increase.
Historically, such trends have preceded increases in price, indicating a potentially favorable long-term investment opportunity.
Chainlink’s Integration with Base Network
Chainlink’s Data Streams application is designed to provide decentralized applications on Base with real-time market data and automated execution, essential for developing competitive DeFi products.
“Base’s builder-friendly environment is a natural fit for Chainlink products, and we’re excited to see all of the Chainlink platform now available on Base,” said Thodoris Karakostas, Head of Blockchain Partnerships at Chainlink Labs.
Additionally, the recent update to Chainlink VRF v2.5 includes improvements that reduce transaction friction and optimize gas usage predictions, thereby enhancing overall transaction efficiency.
The post Chainlink’s Price Teeters at $10—Here’s Why $23 Might Be Around the Corner! appeared first on ETHNews.
