Chainlink Soars Over 40% This Week: Here’s A Chart Analysis

• The LINK price sharply rebounded from the trendline support mark of $13 this week.
• A double bottom formation was noted on the daily chart.

The Chainlink (LINK) price has defied the selloff and witnessed a sudden rise of over 40% this week. The token has exceeded the key moving averages and is eyeing to surpass the $20 mark ahead.

A sharp recovery and a golden crossover hint at significant inflows and demand rising for the token. Fueled by retail investor buying sentiment and major inflows, the LINK token witnessed an impressive recovery from the bottom.

At press time, the Chainlink (LINK) price traded at $18.37 with an intraday drop of 1.20%, reflecting neutrality on the charts. It has a monthly return ratio of 35.20% and a yearly return ratio of 183.29%.

The pair of LINK/BTC is at 0.000270 BTC, and the market cap is $212.82 Million. Analysts are bullish and suggest that the LINK price may register a sharp breakout above the $20 mark and might skyrocket to the $25 mark soon.

A tweet by @CryptoAce states that the LINK token will reach three digits by 2025 and is moving silently. Meanwhile, the token has shown strength and will reward its investors hugely soon.

$LINK to 3 digits by 2025

Showing a lot of strength lately and moving up silently
I know many of you are holding this from lower levels

You will be rewarded heavily when it reaches ATH in Q4 and 5x by next year
Maybe or maybe not one shakeout possible in a month or two then… pic.twitter.com/mMOrIHY1Vq

— Crypto ce (@CryptoAceBull) May 31, 2024

Source: X

Is Chainlink Set for a Major Rally Ahead?

Fueled by a smart recovery and retailer buying interest, the LINK token has defied the selloff and reverted from the bottom mark of $13. Moreover, the token outperformed and might register a sharp bull run above the $20 mark.

Source: Santiment

Amidst the significant recovery, the LINK token has witnessed fresh bullish momentum and will likely stretch the up move ahead. A break and close above the $21 mark would validate the next leg toward $25.

An earlier post by @ Michael Van De Poppe says that he expects an upcoming rise, and the token might reach $25-30 in the next sessions.

I'd like #Chainlink to hold above $16 and then the next resistance zone is $21.

Higher low (on the weekly timeframe) established and $LINK is likely continuing to $25-30 in the coming months. pic.twitter.com/i4RgcofmH7

— Michaël van de Poppe (@CryptoMichNL) May 29, 2024

Source: X

Social Dominance and X Followers Outlook

The Social Dominance data revealed a surge of over 23% to 0.825% and witnessed growing interest and discussion activity of users on the social media platforms.

Source: Santiment

Similarly, the Twitter Followers data remained flat and stayed close to 400, revealing a neutral outlook.

Futures OI Data Reveal Short Covering

Amidst the sudden price rise, the short positions holders got trapped, and sellers started covering their positions.

The open interest (OI) data reveal a decline of over 3.20% to $250.82 million in the last 24 hrs, implying an upcoming surge on the cards.

The immediate support levels for the Chainlink token are $17.60 and $16.90, whereas the key upside hurdle is around $20, followed by $21

Conclusion

Chainlink (LINK) price has surpassed key moving averages and reversed from the bottom support mark of $13. It took support from the trendline mark and defied the selloff this week.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.