Chainlink (LINK) Indicates the Bullish Pressure

With LINK trading around the value of $12.90, analysts refer to the potential towards the price of $26 if it clears a key resistance zone.

The cryptocurrency world is buzzing with Chainlink (LINK) showing signs of bullish pressure, according to Afritab.

With LINK trading around the value of $12.90, analysts highlight the potential towards the price of $26 if it clears a key resistance zone. What’s more, LINK is heavily oversold and the bearish reversal pattern has caught the attention of the market keenly.

According to Afritab post FIGURE CRITICAL LEVELS: SUPPORT AT $12.28 VS RESISTANCE AT $14.58

Crypto Analyst Ali Martinez highlighted critical levels shaping LINK’s direction. Support lies at around $12.28, while $14.58 serves as a formidable resistance. The breach of the support line now creates a launchpad for potential bullish reversal. Breaking $14.58 could unlock a path toward higher highs in the short term.

However, price rejection at that point is still possible based on sell pressure that occurred previously. Martinez’s strategy employs the use of cost-basis analysis to measure support and resistance levels. This approach looks at where most tokens were purchased, with such areas typically indicating how price will react afterward.

On-chain visualizations depict token concentration at price levels using dot sizes. Green dots below the price indicate support, whereas red dots above denote resistance. Dots that are bigger indicate more substantial token volumes, which denote more assertive investor action along with greater areas of price impact.

According to IntoTheBlock data, 11,130 addresses bought 26.55 million tokens between $12.28 and $12.62. This area is heavily support since investors will cover their entries, establishing strong support. These areas of accumulation tend to induce buying pressure, which cushions LINK from the pressure of selling.

Conversely, resistance looms in the $14.19-$14.58 region, where 20,930 wallets hold 21.19 million tokens. If LINK revisits this price range, sellers may emerge, aiming to break even. This action could cap gains and stall LINK’s bullish momentum unless volume and sentiment override the resistance wall.

A daily falling wedge above LINK’s lower high trendline suggests a breakout to $16 is realistic. Meanwhile, LINK’s intraday chart indicated indecisive price action, with movements restricted to a tight range. A breakout above $13.20 may offer a trading opportunity, whereas a drop below $11.80 would suggest a test of the key support level.