Chainlink (LINK) Eyes Breakout as On-Chain Metrics and Market Sentiment Strengthen: Will LINK Hit New Highs?

Chainlink (LINK) Eyes Bullish Breakout Amid Strong On-Chain Metrics and Market Sentiment

Chainlink (LINK) is on a promising upward trajectory, fueled by recent technological advancements and solid market performance. With the launch of CCIP Private Transactions for banks and integration with Bitcoin, Chainlink is establishing itself as a leader in cross-chain tokenized asset settlements. Furthermore, a pilot program with ANZ and an AI-driven approach to managing financial data have propelled LINK to a 4.46% gain, currently trading at $11.79. The key question: is LINK set for a breakout, or will resistance hold?

Technical Analysis: Triangle Formation and Bullish Indicators

Currently, LINK is trading near the upper boundary of a symmetrical triangle pattern that has been forming since mid-July, positioned at around $11.77. A breakout above this pattern could signal a move to the psychological resistance level of $13. Supporting this bullish setup, the Relative Strength Index (RSI) sits at 54.98, indicating a slight bullish edge, while the MACD displays a recent bullish crossover, which often signals upward momentum.

On-Chain Metrics: Growing Usage and Demand

Chainlink’s on-chain metrics also reflect positive trends, with active addresses rising by 1.11% in the past day to reach 176.45k, indicating increased interest in the network. Additionally, transaction counts rose by 1.18%, underscoring growing network engagement. These metrics align with Chainlink’s expanding utility and support the broader bullish narrative.

Exchange Reserves and Liquidation Trends: Signs of Reduced Selling Pressure

Another encouraging sign for LINK is a 0.27% drop in exchange reserves over the last week, falling to 163.97 million tokens. This decrease suggests that holders are moving LINK to private wallets, potentially reducing selling pressure on exchanges. Meanwhile, the imbalance in long and short liquidations — $185.22k in long positions versus $131.73k in shorts — underscores traders’ confidence in LINK’s upward trajectory.

Potential Price Targets and Key Levels

If LINK can successfully breach the $12 resistance, it may quickly target higher levels. However, traders should watch for a possible pullback at this point, as resistance at $12 could prompt short-term profit-taking before LINK resumes its upward path.

Conclusion

With LINK’s expanding on-chain activity, reduced exchange reserves, and technical indicators pointing towards a breakout, Chainlink appears well-positioned for further gains. Breaking above $12 would mark a critical milestone in LINK’s bullish trajectory, potentially leading to new highs. However, traders should remain vigilant, as resistance near $12 could temporarily stall the rally.

Todor Tsonev publication: "Chainlink (LINK) Eyes Breakout as On-Chain Metrics and Market Sentiment Strengthen: Will LINK Hit New Highs?" was written for 24crypto.news

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