There is a bullish pattern that has appeared on Chainlink's chart, indicating a potential increase in price.
In the beginning of the year 2024, several cryptocurrencies started on a positive note, with Chainlink [LINK] being one of them. One notable observation was the formation of a bullish pattern on Chainlink's chart, indicating a higher likelihood of a potential bull rally.
Are the Chainlink bulls here?
Over the past 24 hours, the price of Link experienced a significant surge of more than 5%. As per CoinMarketCap's latest data, at the time of writing, LINK was being traded at $15.83, boasting a market capitalization exceeding $8.9 billion.
Additionally, Ali, a well-known crypto analyst, has highlighted the formation of a bullish pennant pattern on Chainlink's chart amidst these developments.
If LINK successfully breaks above the resistance level at $17.2, it has the potential to reach $34 in the near future. However, investors should also be cautious of the $14.2 level. If LINK drops below this level, there could be a significant decline in its value.
To verify the validity of this claim, AMBCrypto conducted an analysis of LINK's liquidation heatmap. The findings indicated that LINK is indeed encountering a crucial resistance zone around the $17 mark.
In addition, there are two other significant levels to consider in terms of potential high liquidations for LINK, which are approximately $15.7 and $15.
Prediction for LINK in 2024
Despite encountering several resistance levels, the token experienced a persistent buying pressure. This was evident as Chainlink's Supply of Exchanges decreased last week.
During this time, there was a sharp increase in the token's Supply outside of Exchanges, indicating significant buying pressure. However, there were no major fluctuations in whale activity as the supply held by the top address graph remained unchanged last week.
To gain insights on whether Chainlink will surpass the $17.2 resistance zone, AMBCrypto examined LINK's daily chart. The analysis revealed that LINK's Relative Strength Index (RSI) showed an upward movement from the neutral level at the current time.
In addition, the Money Flow Index (MFI) of Chainlink also followed a similar trajectory, suggesting an increased likelihood of a continued upward price movement in the coming days.
On the contrary, the Chaikin Money Flow (CMF) displayed worrisome signals as it declined during this timeframe. Taking into account the metrics and indicators mentioned above, it will be intriguing to observe whether Chainlink will reach the $34 mark in the near future.
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