Chainlink (LINK) Price Demonstrates Stability Amidst the Volatile Cryptocurrency Market Environment

The price increased after its previous dip to showcase improved buying demands. Market observers follow LINK price ability to sustain its rising trend.

Chainlink price is known for its stability in the volatile cryptocurrency market environment. Its price rose after a previous dip to show signs of improved buying demands.

Market observers are following LINK’s ability to sustain its rising trend by breaking past the $20 mark amid more selling pressure.

Chainlink Price Bounces Off $13.07

Chainlink price showed strong recovery capabilities after bouncing off its crucial support at $13.07. The digital asset reached $16.16 during its daily closure, notching up a 17% increase. This signaled bullish dominance, with long-tail candles on the daily chart suggesting sustained interest from buyers.

Notwithstanding, market trends and growing investor confidence in Chainlink price potential contributed to the market's recovery.

Buyers are showcasing their ongoing activity within the $16 demand zone following LINK’s price rise from $13.07. Despite the price noting a temporary recovery, it continues to face downward pressure after observing a 15% price drop previously.

Resistance at $17.31 Could Determine the Next Move

Meanwhile, Chainlink price needs to breakthrough the resistance at $17.31 before it can attempt sustained growth. LINK’s ability to pierce through this resistance will enable it to advance toward the $20 psychological level, securing a sustained upward trend.

The bearish crossover between the 50-day and 100-day exponential moving averages continues as these indicators approach a death cross pattern with the 200-day EMA. However, the RSI has recovered from its oversold state, signaling that purchasing power might be increasing.

Besides, a bullish outlook for Chainlink requires the price to rise above the 50% Fibonacci retracement point at $17.30. Another retest of the $13.12 support level can occur if Chainlink fails to maintain a close price above it.

Still, recent analysis shows Chainlink price could experience a rally after the TD Sequential indicator displayed a potential buying opportunity. The TD Sequential indicator displayed a “9” pattern to suggest an upcoming price increase.

Does Rising Exchange Supply Present a Challenge for LINK Price?

Further, crypto analyst Ali Martinez discovered that 2.23 million LINK tokens moved to exchanges during the last two weeks, thus raising the total exchange-supplied LINK tokens to 197.14 million LINK. The growing number of tokens on exchanges sparks widespread fears of strong selling pressure.

A large volume of LINK tokens on trading platforms implies investors might soon commence selling their tokens. That could truncate its potential upward movement.

The asset faces the possibility of another market downturn when selling pressure reaches critical levels, according to the analyst’s assessments. Chainlink stands to sustain its recovery path as long as demand outpaces the additional token supply.