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Chainlink has surged nearly 10% over the past week, suggesting a potential breakout from its current price channel.
As the broader crypto market recovers, Chainlink appears poised for a trend reversal. With expectations of an altcoin season this winter, LINK is on the verge of breaking free from a falling channel.
Could this breakout lead Chainlink to surpass $15 and possibly set a new 52-week high?
Santiment Points Bullish Catalysts for Chainlink
Recent analysis from Santiment highlights key factors driving Chainlink’s price surge. A significant whale buying spree has seen 8.5 million LINK tokens accumulated over the past six weeks. Additionally, several bullish catalysts are supporting Chainlink’s upward momentum.
Santiment noted that the 30-day Market-Value-to-Realized-Value (MVRV) ratio recently jumped to +9.2%, indicating potential growth. However, they caution that if this ratio climbs to +15% or higher, it could signal that a price top is near. Meanwhile, the 365-day MVRV ratio remains negative at -13.1%, suggesting there is still significant room for growth for long-term holders who can wait for further recovery before selling.
Furthermore, social volume for Chainlink has increased compared to June and early July 2024, and LINK’s value against Bitcoin has risen from less than 0.00175 BTC in mid-September to approximately 0.00192 BTC currently.
Chainlink Teases Channel Breakout
Analyzing the daily chart reveals a falling channel pattern for LINK, which has been in decline since its rejection phase in March 2024. However, with a critical support level established at $9.60, Chainlink is showing signs of recovery.
The recent double-bottom reversal has led to a nearly 28% price increase over the last 20 days, starting from the $9.556 mark and surpassing the 50-day EMA. LINK is now challenging the 100-day EMA at around $12.16 and the overhead resistance trendline.
The MACD indicator further supports this bullish trend, with both the MACD and signal lines showing positive momentum along with increasing histogram values.
Will LINK Price Surpass $15?
In addition to the key resistance levels mentioned, Fibonacci retracement levels identify the 23.60% level at $12.43 as another significant barrier. The current rally is testing this neckline of the double-bottom reversal.
Looking ahead, the next targets for LINK based on Fibonacci levels are the 38.20% and 50% retracement levels at $14.21 and $15.64, respectively. If the breakout continues, LINK could potentially reach the upper boundary of the falling channel, approaching the $22 mark.