- Chainlink (LINK) is showing bullish momentum with a potential rally to $50, fueled by reduced supply on exchanges, positive on-chain metrics, and growing demand for its CCIP technology.
- Analysts highlight critical resistance at $27.14, with a successful breakout potentially pushing LINK to $32.027 and beyond, while a failure to hold $24.128 may trigger further downside.
Chainlink (LINK) has recently captured the attention of investors as its price movement suggests a bullish breakout that could lead to a significant rally. At the time of writing, LINK, Chainlink’s native token is swapping hands with $24.07 marking a 9.55% surge in the past week.
Notably, there has been a noticeable drop in the supply of LINK on exchanges which has further added momentum to its potential upward trajectory, fueling optimism for a surge toward $50.
Will Chainlink Price Rally 100% From Here?
After bottoming out at $18 on January 13, Chainlink experienced a remarkable 50% rally, reaching $27. However, as the broader crypto market faced a sell-off, LINK retraced 5.85% to its current level of $24.38.
Despite this pullback, prominent cryptocurrency analyst Ali Martinez remains optimistic, predicting that Chainlink is in the midst of a bullish breakout. “Chainlink (LINK) is in the middle of a bullish breakout, targeting $50!” Martinez stated in a recent post, adding credibility to the growing anticipation.
For the bullish breakout to materialize, Chainlink needs to decisively breach the narrow trading range of $24 to $27. Over the past three days, LINK’s upward momentum faced resistance at the $27.14 mark, resulting in a 5.5% pullback to test the $24.128 support level.
According to trend-based Fibonacci analysis, a successful breakout above $27.14 could push LINK toward the 61.80% Fibonacci level at $32.027, representing a 32% upside from its current price. However, failure to hold the $24.128 support could result in a decline to the 50-day EMA at $21.97, posing a downside risk of 15.15%.
On-Chain Metrics and Key Developments
On-chain data from analytics platform Santiment underscores the bullish case for Chainlink. Over the past month, the supply of LINK on exchanges has decreased by 0.95%, signaling reduced selling pressure as investors transfer their tokens to private wallets.
🔗📈 Chainlink's market value is back above $26.75 on another +7.3% surge day. Two bullish signals to watch are the declining supply on exchanges (-0.95% less LINK on exchanges in past month) and mean dollar invested age (average LINK is 6.3% younger in their respective wallets). pic.twitter.com/KtFvOrSLtB
— Santiment (@santimentfeed) January 22, 2025
Furthermore, the average age of LINK in wallets has dropped by 6.3%, suggesting increased activity and accumulation among holders.
Chainlink’s ecosystem developments also add to its bullish narrative. The Cross-Chain Interoperability Protocol (CCIP) continues to gain traction, with blockchain platform Sonic Labs recently deploying CCIP to enhance cross-chain token transfers and messaging capabilities.
These advancements aim to empower developers and support high-performance decentralized finance (DeFi) applications, further solidifying Chainlink’s position in the blockchain space.
While Chainlink faces critical resistance at $27.14, the combination of bullish on-chain metrics, increased demand for its interoperability solutions, and technical chart setups point to a promising outlook.
If LINK can overcome its current resistance levels, a rally to $50 could be within reach, marking a significant milestone for the cryptocurrency and its investors. However, traders should remain cautious of potential downside risks, particularly if the support at $24.128 fails to hold.