As market sentiment becomes bullish in anticipation of Trump’s inauguration on January 20, demand for Chainlink is on the rise. Additionally, the increase in price coincides with other developments, such as the launch of version 1.5 of CCIP on the main network. These factors have positively impacted on-chain metrics, potentially driving the LINK price toward $30.
Whales Prepare LINK Price for $30
The cryptocurrency market has been very unpredictable in the last 24 hours. The Fear/Greed index, which measures investor sentiment, has dropped slightly from 60, showing that traders are becoming more cautious.
In the last day, Chainlink (LINK) has seen significant trading activity, particularly from buyers. According to Coinglass, trades involving LINK worth about $1.84 million were settled, with $1 million of that coming from buyers who were closing their long positions.
After the recent rise in its price, Chainlink has attracted more trading interest. The open interest, which shows the total number of open derivative contracts, has increased to $1.08 billion, indicating higher demand. Additionally, data from IntoTheBlock reveals a significant increase in activity from large investors (whales) in LINK.
Over the past week, the large transaction volume has jumped significantly, from $35.6 million to $185 million, reaching a peak transaction count of 613. This indicates that the price of LINK might keep rising as big investors continue to buy more.
However, Chainlink might experience some downward pressure since the long/short ratio is falling sharply. This ratio is currently at 0.4292, indicating that most traders expect the LINK price to drop. Currently, 70% of positions are betting on a price decline, while only 30% are anticipating a price increase.
Additionally, the increasing MVRV ratio toward 1.9 indicates the market is overvalued. The rise in MVRV ratio generally signals that more people are in profit, but it also carries the risk of potential sell-offs if LINK investors decide to exit in profit.
What’s Next for LINK Price?
The price of Chainlink has steadily risen, currently attempting to maintain a position above the declining resistance line. It recently experienced a minor decline due to sales by short-term holders, which brought it close to the immediate resistance level. As of now, Chainlink’s price is $24.4, reflecting a 5% increase in the last 24 hours.
The LINK/USDT trading pair is fluctuating around $24 and may soon surpass this threshold. The Relative Strength Index (RSI) stands at 73, suggesting an overbought condition, and it seems likely that LINK will retest the channel’s resistance line. If the price remains stable above $25, it could create favorable conditions for buyers, possibly elevating the price to $30.
On the other hand, if the price falls below the 20-period Exponential Moving Average (EMA20) on the 1-hour chart, there could be a downward push by sellers aiming for a price range between $19 and $20.
