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Recent data suggests Chainlink could reach $15.50 if it stays above $12.52, breaking key resistance at $14.44.
According to analyst Ali Martinez and data from IntoTheBlock, the key supply wall at $14.44 serves as a significant resistance level. Breaking this resistance could propel LINK towards $15.50, suggesting a bullish movement.
Data from @intotheblock shows that if #Chainlink stays above $12.52, it might test the crucial supply wall at $14.44. Breaking this level could propel $LINK to $15.50! pic.twitter.com/ZtbQok2Plq
— Ali (@ali_charts) July 11, 2024
At the current price of $12.89, the most critical support level is between $12.52 and $12.87, where 9.1k addresses hold 38.32 million LINK. This level represents strong support, indicating a substantial number of investors are in profit at this price range.
On the resistance side, the price range of $12.92 to $13.26 is crucial, with 10.93k addresses holding 44.04 million LINK. This volume and number of addresses suggest a strong resistance level that the price needs to overcome for further upward movement.
Further resistance is identified at the $14.04 to $14.44 range, with 18.14k addresses holding 35.84 million LINK. According to the analyst, overcoming this range could push LINK to $15.50.
Historical Recovery Trends
The recent analysis comes two days after Chainlink experienced a significant trader capitulation spike, with realized losses reaching $60 million on July 8. However, the spike, the largest in 2024, signaled potential market bottoming as traders exhibited fear, uncertainty, and doubt (FUD).
Historical data suggests that such capitulation events often precede market recovery. For instance, a similar spike on April 13 led to a 17% price increase over the next ten days. Additionally, dormant LINK tokens have started to move, indicating a possible shift in market sentiment or anticipation of significant market changes.
Experts Remain Bullish
Renowned analyst Michaël van de Poppe highlighted Chainlink’s recovery from a critical support zone, suggesting potential significant price increases. Chainlink, currently trading for 0.0002485 BTC, has formed higher lows and higher highs, indicating a bullish trend. Van de Poppe’s analysis aligns with the current data, suggesting that if LINK breaks its resistance levels, a notable price increase could follow.
Today, Chainlink’s price stands at $12.42 and a market cap valued at $7,554,923,477. Despite a 2.34% price decline in the last 24 hours, LINK has seen a 7.73% price increase over the past week.