Is LINK Price Aiming for $30 This Weekend?
Demand for Chainlink is rising as market sentiment becomes optimistic in anticipation of Trump’s January 20 inauguration. Additionally, the price increase coincides with other developments, such as the launch of CCIP version 1.5 on mainnet. These factors have had a positive impact on on-chain metrics, potentially pushing LINK price to $30.
Whales ready LINK for $30
The cryptocurrency market has been very unpredictable over the past 24 hours. The Fear/Greed Index, which measures investor sentiment, fell slightly from 60, indicating traders were becoming more cautious.
Chainlink (LINK) saw a lot of trading activity during the final day, especially from buyers. According to Coinglass, transactions involving LINK were worth approximately $1.84 million, of which $1 million came from buyers who closed their long positions.
Chainlink has attracted more trading interest following its recent price surge. Open interest, which shows the total number of open interest in derivatives contracts, has increased to $1.08 billion, indicating increased demand. Additionally, data from IntoTheBlock shows a significant increase in activity from large investors (whales) in LINK.
In the past week, large transaction volume jumped significantly, from US$35.6 million to US$185 million, with the highest number of transactions reaching 613. This suggests that LINK’s price may continue to rise as big investors continue to buy.
However, Chainlink may face some downward pressure due to the sharp decline in the long-short ratio. The ratio currently stands at 0.4292, indicating that most traders expect LINK price to fall. Currently, 70% of positions are betting on falling prices, while only 30% are betting on rising prices.
Furthermore, the rising MVRV ratio to 1.9 indicates that the market is overvalued. An increase in the MVRV ratio usually indicates more people are taking profits, but it can also bring the risk of a potential sell-off if LINK investors decide to take profits and exit.
What’s next for LINK prices?
Chainlink’s price has steadily increased and is currently trying to stay above the falling resistance line. The stock has experienced a slight decline recently due to selling by short-term holders, which has brought it close to current resistance. As of now, Chainlink’s price is $24.4, up 5% in the past 24 hours.
The LINK/USDT trading pair is trading around $24 and may soon cross this threshold. The relative strength index (RSI) is at 73, indicating overbought conditions and LINK may retest the channel’s resistance line. If the price stabilizes above $25, it could create favorable conditions for buyers, possibly pushing the price to $30.
On the other hand, if the price breaks below the 20-period exponential moving average (EMA20) on the 1-hour chart, sellers may push the price downwards in a range between $19 and $20.
