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Chainlink Price Analysis: LINK Eyes $20 Mark as Accumulation Trend Fuels Recovery
Chainlink Price Analysis: Recovery Gains Traction as Support Solidifies at $12.75
As the broader crypto market continues its consolidation phase into the second week of July, Chainlink (LINK) has shown resilience by rebounding from a significant drop to $11.05, now stabilizing around the $12.75 support level. With Bitcoin’s price movement remaining indecisive below $58,500, characterized by short candlestick bodies and long wicks, Chainlink mirrors this market uncertainty yet shows promise of an impending recovery fueled by substantial investor accumulation.
Significant Outflows Indicate Strong Investor Confidence
During the recent market downturn, Chainlink’s price endured a steep fall, creating a V-top reversal on the daily charts that saw the token plummet from a high of $19.2 down to a low of $11.05, marking a 42.5% decrease. Despite this, LINK’s price found strong demand at the lower boundary of a descending wedge pattern. This technical support, closely aligned with the $12.2 level and the 200-week Exponential Moving Average (EMA), has formed a robust accumulation zone.
Data from crypto analytics firm IntoTheBlock shows that Chainlink has seen a net outflow of approximately $110 million from exchanges over the past two weeks. This trend of tokens being moved off exchanges suggests a significant accumulation phase, with investors likely transferring their LINK to more secure storage in anticipation of long-term growth. Such behaviors are often viewed as a sign of growing confidence in the asset’s future potential.
Potential for a Bullish Breakout
If Chainlink can maintain its current support levels, there is a potential for a 28% recovery, which could see the price challenge the upper trendline of the falling wedge pattern at $16.45. However, for a more substantial rally to occur, LINK must break out from the upper boundary of the wedge pattern decisively. A successful breakout could end the current correction phase and potentially push prices towards the next resistance levels at $19.2, followed by $22.8 and even $28.62.
Technical Indicators to Watch
- Exponential Moving Average (EMA): The 50-day and 200-day EMA are on the verge of a bearish crossover, which could increase selling pressure and extend the ongoing correction.
- Moving Average Convergence Divergence (MACD): The MACD line (blue) and the signal line (orange) are exhibiting a flat trend with multiple crossovers, indicating a neutral market sentiment currently.
As Chainlink navigates through these technical thresholds, the accumulation trend highlighted by recent exchange outflows will be crucial in determining the strength and sustainability of its recovery. Investors and traders should monitor these developments closely, as they could signal the early stages of a more robust upward trend for LINK.
Disclaimer: The projections and information presented here are for educational purposes only and should not be considered financial advice. CoinGrab.Asia assumes no responsibility for any losses resulting from the use of this data. Readers are encouraged to perform their own research and proceed cautiously before engaging in any related activities.
