- Chainlink’s breakout may target $27.23 as traders anticipate a rally towards $50
- On-chain metrics, including active addresses and exchange reserves, supported LINK’s bullish momentum
Chainlink [LINK] has been gaining momentum on the charts lately, with the crypto breaking out of a descending wedge pattern. Needless to say, this has ignited optimism across the crypto market. At press time, LINK was trading at $26.31 following a 9.20% hike in the last 24 hours.
The altcoin’s latest rally has brought LINK closer to its key resistance levels, with traders speculating about a potential move towards $50. Can Chainlink sustain this bullish momentum and deliver a breakout for the altcoin market?
LINK’s price action highlights breakout potential
Chainlink’s price action highlighted significant bullish momentum as it broke past its recent consolidation phase. The descending wedge breakout, combined with strong Fibonacci retracements, underlined the potential for upside on the charts.
However, the key resistance level at $27.23 remains critical, as a failure to surpass this level could lead to temporary pullbacks. Additionally, the gradual uptick in trading volume supported the breakout narrative – Creating a foundation for a potential surge towards $30 and higher.
Source: TradingView
LINK-HODL token partnership boosts investor confidence
Chainlink’s integration with HODL Token is sparking excitement within the decentralized finance (DeFi) space. By combining Chainlink’s cutting-edge oracle technology with HODL Token’s ecosystem, this collaboration aims to improve transparency and efficiency.
Furthermore, the partnership’s potential to drive innovation in passive income systems could expand Chainlink’s use cases. Additionally, it strengthens investor sentiment, as this collaboration underlines LINK’s utility within the crypto landscape.
Daily active addresses show network growth
The number of daily active addresses on the Chainlink network has risen by 1.01% in the last 24 hours – A sign of increased engagement. This growth is a sign of renewed interest among users, something that often correlates with price appreciation.
Moreover, the consistent hike in activity highlighted the broader adoption of Chainlink’s technology. However, maintaining this growth is critical. Especially as declining activity could undermine the prevailing bullish sentiment.
Source: CryptoQuant
LINK exchange reserves signal bullish sentiment
Finally, Chainlink’s exchange reserves have dropped by 0.28% in the last 24 hours – A positive signal for its price action.
Lower exchange reserves often imply reduced sell pressure as investors move tokens to long-term storage or staking platforms. This would be in line with the ongoing rally, showcasing strong demand for LINK. Therefore, the declining reserves supported the narrative of a sustained uptrend.
Source: CryptoQuant
Is your portfolio green? Check out the LINK Profit Calculator
At press time, Chainlink appeared well-positioned for sustained growth, given its bullish price action, strategic partnerships, and improving on-chain metrics.
A decisive break above $27.23 could solidify its trajectory toward $50. Therefore, all signs suggest that Chainlink has the potential to achieve its ambitious target in the near future.
