Chainlink (LINK) Price Prediction: Further Gains

Chainlink's (LINK) price has risen above $11 following the recent Fed rate cut. This increase has ignited fresh speculation about the coin's short-term outlook.

Chainlink’s (CRYPTO: LINK) price has seen a substantial increase, rising above the $11 mark following the recent Federal Reserve rate cut. This development has sparked fresh speculation regarding the coin’s short-term outlook.

BeInCrypto examines the factors contributing to the Chainlink price hike, the potential implications of the rate cut, and what traders can expect from LINK in this analysis.

Chainlink Key Drivers Want More According to Santiment, Chainlink’s 90-day Mean Coin Age (MCA) has risen notably, coinciding with the recent rate cut. The MCA denotes the average age of tokens in circulation.

A low MCA suggests that tokens that have been dormant for a significant period are being moved from cold wallets. This movement typically precedes a sell-off, putting downward pressure on the price.

Conversely, a rising MCA indicates that investors are holding onto their tokens and engaging less in trading activity. This behavior often signals a long-term hold strategy. In Chainlink’s case, the spike in the MCA showcases many investors choosing to keep their LINK tokens dormant or moving them into self-custody, which reduces selling pressure.

Moreover, the 4-hour LINK/USD chart reveals a surge in the Cumulative Volume Delta (CVD), a key indicator of market sentiment. Each bar on the CVD shows whether the market is dominated by buying or selling activity. Red bars signal selling pressure, which could drive the price down.

In LINK’s case, the chart shows five consecutive green bars, indicating sustained buying pressure. This suggests that the market’s demand for LINK is growing, potentially supporting the continuation of its uptrend.

LINK Price Prediction: Further Gains The daily chart shows that Chainlink is holding strong at the $10.02 support level, which played a crucial role in its recent breakout above the $10.83 resistance. Currently, LINK is trading at $11.30, with no significant resistance in sight to halt the uptrend.

Using Fibonacci retracement levels to assess potential price targets, LINK’s next likely move could take it to $11.86, corresponding to the 38.2% Fibonacci level. If it breaks past this point, the next target could be around $12.98, a level that appears within reach given the current momentum.

However, the cryptocurrency could experience a pullback if it fails to surpass $11.86. If that happens, LINK might drop to $9.25.