Chainlink $24.2‘s price action has been on investors’ radar recently. The technical chart structure shows the price rising up to $50. On the weekly chart, LINK is trading up 12% and is focused on breaking into the top ten on the top cryptocurrency list. The decrease in LINK supply in the stock exchanges may support the price increase.
Will Chainlink Price Increase by 100%?
After the checkpoint bottomed at $18 on January 13, Chainlink price rose 50% to $27. However, due to selling pressure in the overall crypto market, LINK price is trading at $24.38, down 5.85% at press time.
“Chainlink (LINK) is in a strong bullish breakout, targeting $50!” said Ali Martinez, a leading cryptocurrency analyst.
LINK Tests Key Support Levels
To move higher, Chainlink price must break the narrow range between $24-27. After rising for three consecutive days, LINK was rejected at the $27.14 resistance level. Moreover, with a strong pullback of over 5.5% today, LINK is again testing the $24,128 support level.
As shown by trend-based Fibonacci levels, a bullish breakout above the $27.14 resistance level could push the price to $32,027, with an upside potential of approximately 32%.
On-Chain Metrics and Key Developments
Blockchain analysis platform Santiment reported that two key on-chain metrics signal bullish momentum for Chainlink price. In the last month, LINK supply on exchanges has decreased by 0.95%, indicating that selling pressure has decreased as investors withdraw the tokens from trading platforms.
On the other hand, the average age of LINK in wallets decreased by 6.3%, indicating increased activity and a potential shift towards accumulation by holders.
Additionally, Chainlink’s Cross-Chain Compatibility Protocol (CCIP) is in greater demand. Blockchain platform Sonic Labs has officially announced the deployment of Chainlink’s CCIP, providing developers with advanced tools to enable cross-chain token transfers and messaging capabilities.
Using CCIP, Sonic Labs aims to facilitate seamless compliance and the creation of high-performance decentralized finance (DeFi) applications.
Chainlink’s price target and technical indicators provide important indicators for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
