Link ($LINK) keeps building its momentum, pushing past $23.75. The token’s latest rally has in fact put back in place the bullish sentiment that many had thought was muted.
So what gives? Well, a combination of on-chain data and expert evaluation are putting forth the idea that Link may well be situated for a much, much higher price target. As usual, the happenings that underpin this are well worth exploring.
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
Bullish Indicators Fueling Chainlink’s Rally
Chainlink’s robust performance, both on-chain and in terms of market sentiment, is being driven by several factors.
1. Declining Supply on Exchanges
Perhaps the most striking bullish indicator is the falling amount of LINK that’s on exchanges. In the month since the last report, the amount of LINK on exchanges has fallen 0.95%. Where are these tokens going? Investors seem to be removing them from trading platforms and holding them somewhere else—likely for the long term.
A move by so many to take their assets off exchanges is a potent sign of (a) faith in sustained price growth, since leaving assets on exchanges becomes increasingly silly if (repeatedly) prices just keep rising; and (b) a lack of near-term sell plans, since it’s also increasingly silly to leave assets on exchanges if you want to sell them in the near term.
2. Younger Dollar-Invested Age
Another positive sign is the decrease in the mean dollar-invested age. This measures how long LINK tokens have been sitting in their respective wallets. Right now, the average LINK token is 6.3% younger than it was a few months ago. This hints at investors being more active with LINK tokens.
Younger coins are often seen as a sign of renewed confidence in an asset. This also seems like a sign that more and more people are taking an interest in Chainlink. Overall, these metrics seem to point toward positive sentiment brewing around LINK tokens.
3. Rising Profits Among Holders
Currently, 80% of all LINK holders are in profit, which is a level we haven’t seen since the lofty days of December. This large number of profitable holders is a direct result of a strong price performance in recent weeks, and it should make investors feel more confident about the token going forward. Increased confidence with a high percentage of investors in profit can also lead to increased price stability and growth as these investors hold instead of sell.
Expert Analysis: $50 Price Target
Renowned crypto analyst Ali Martinez has placed his bets on Chainlink’s current breakout, estimating that the token could vault to $50 before this latest rally plays out. On-chain data, technical metrics, and the dwindling number of LINK tokens on exchanges have him seeing stars for the increasingly popular oracle project.
#Chainlink $LINK is in the middle of a bullish breakout, targeting $50! pic.twitter.com/ffMRNDNYL2
— Ali (@ali_charts) January 22, 2025
For Chainlink to get to $50, it would necessitate a continued current rally and a successful breach of key resistance levels. On-chain data indicates that LINK is approaching some very significant resistance zones around $27 and $29. These levels line up with where the token faced substantial pushback during its price rallies last year. If it were to breach these resistance levels, onward and upward might be the lineup, potentially reaching $50 as per price target a.link.kito has on it.
Challenges Ahead: Resistance Levels and Market Dynamics
Although Chainlink has performed well, there are still some obstacles to clear. The $27 and $29 price levels are substantial resistance points, and moving through these zones will necessitate not just buying pressure but also strong market momentum. There have been times when these levels have almost acted as “breakout zones” for LINK. If we clear these levels on a closing basis, I think we are very much in play for the next leg up.
Currently, 80% of $LINK holders are in profit, a figure that matches the December highs.
On-chain data indicates significant resistance levels at $27 and $29, in line with where the asset’s price faced resistance last year. pic.twitter.com/N2DgNhL34l
— IntoTheBlock (@intotheblock) January 22, 2025
Moreover, LINK’s trajectory could also be affected by overall market conditions. Even if LINK’s fundamentals remain solid, it’s inextricably linked to the overall crypto market, which is notoriously volatile. When the overall crypto market moves up or down, individual tokens tend to follow suit. So, if we’re trying to assess LINK’s future performance, we also need to take a look at its potential future overall market performance.
Conclusion
Chainlink’s recent march above $26.75 signifies a clear and present case for a test of the next resistance level. Bullish signals of further upside make this a likely case. The three reasons of a declining supply on exchanges combined with a younger, dollar-invested, age, and a rising percentage of profitable holders, make a compelling argument for a push above the next level.
On-chain data show crucial levels of resistance at $27 and $29 for LINK. If it can push past these on-chain obstacles, the next step in LINK’s journey will be a crucial moment to look for whether it’s making moves toward the ambitious target of $50 that some analysts have set for it. For the moment, though, Chainlink’s on-chain performance is solid, and it’s a leading player in the cryptocurrency world, and the next big play it makes is one that has a ton of attention on it.
The DeFi and oracle sectors are rapidly growing. In this environment, Chainlink is a critical infrastructure provider. It positions itself for long-term success. Can it seize this growing opportunity? Will it rise above its current price levels? We don’t know yet. But we do know this: Chainlink appears to be a pretty good prospect and, hence, a good buy right now.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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