Chainlink (LINK) Navigates Choppy Waters, Eyes Key Resistance Level of $23.78

The crypto landscape is navigating choppy waters, and Chainlink (LINK) is no exception. Analysts, however, are fixated on one key resistance level—$23.78.

Cryptocurrency is experiencing turbulence, and Chainlink (LINK) is no exception. However, analysts are keeping a close eye on a key resistance level that could make or break the token’s future price movements.

According to crypto analyst Ali Martinez, a crucial price point for LINK is $23.78. Failure to cross this threshold could lead to further declines. But if the token manages to break past this barrier, a bullish rally might take shape, resulting in substantial price gains.

Breaking Past Key Resistance Level Could Pave Way for LINK Rally

As highlighted by Ali’s analysis, nearly 78.95% of LINK holders purchased their tokens at an average of $15.28, indicating that they remain profitable. On the other hand, 14.18% of holders bought at an average price of $23.78, currently sitting at a loss. This resistance level carries significance, as investors who bought between $20.96 and $26.25 may sell off their tokens to break even.

As price pushes toward $23.78, mass sell-offs from those looking to recoup their investments could create substantial selling pressure. However, should LINK clear that hurdle, investor sentiment may shift dramatically, opening the path for a rally toward $25, $30, and potentially higher.

Another factor impacting LINK’s price movements is large-scale whale activity. A recent analysis by Footprint Analytics revealed that major holders dumped a staggering 4 million LINK tokens into the market. This kind of large-scale liquidation is often seen as a signal of declining confidence, which is reflected in LINK’s sharp weekly drop.

At the time of writing, LINK is trading at $18.64, according to BNC’s LINK Price Index. The trading volume has also declined by 18% to reach $397.13 million amidst fading investor interest. However, if the buying pressure is sustained, the token could gain the momentum needed to challenge the resistance level.

Can LINK Reclaim Its $52.70 Peak?

During the 2021 bull market, Chainlink soared to an all-time high of $52.70, a level it has failed to revisit since. Currently, Chainlink’s price is 64.2% below its ATH of $52.70. While a strong rally has yet to materialize, Chainlink has been making waves with increased adoption and growing demand.

One of the most notable developments fueling LINK’s traction is the high-profile purchase by Trump’s project, World Liberty Financial. This mass acquisition of Chainlink tokens has added weight to its long-term bullish case. Other factors, such as discussions surrounding a potential Chainlink ETF and its innovative Cross-Chain Interoperability Protocol, are also contributing to its rising demand.

With increasing adoption and the right market conditions, analysts argue that LINK could revisit the $50 mark. However, such a scenario would require a strong Bitcoin rally to sustain momentum.

LINK’s Major Breakout — Key Levels to Watch

Many analysts remain optimistic about LINK’s future price movements, citing historical trends and chart patterns. Some believe that the token has been forming a symmetrical triangle, a pattern often linked to major breakouts. If LINK successfully breaches the key resistance level, the next targets could be $28.50, $36.50, and even $50.

Historically, LINK skyrocketed by over 1,400% from early 2020 to mid-2021 before entering a prolonged accumulation phase. Recent price action suggests that LINK is finally emerging from this phase, with its support holding strong at $9.20 and $4.80. If bullish sentiment prevails, some analysts believe that LINK could not only reclaim its previous all-time high of $53 but even venture into triple-digit territory.