The cryptocurrency industry is gearing up, with the price of Bitcoin showing considerable strength and confident of seeing good price action. Chainlink’s price faced a massive rejection in the first few weeks of January 2022, which caused it to fall significantly off critical support. However, recent price action has shifted the price towards resistance at the same support level between $18.28 and $19.42.
Now that the cryptocurrency has a ton of bullish momentum, will LINK price close above $20?
LINK price has been showing strength at a time when cross-border cryptocurrency markets, including Bitcoin price, are stuck in a range. One of the main reasons for this surge could be the surging optimism among traders. Traders tend to get confident when whales start to accumulate, which has been observed since the last week of January when prices soared above the consolidation level below $16.
According to data from Coinmetrics, the supply of the top 1% of addresses, known as whale addresses, began to accumulate in the last week of January. The supply of wallets jumped from 924.3 million to close to 925 million. This was when LINK price broke out of the consolidation zone it had been trading in for nearly three months. This brought the price into an important resistance area, but bears are also working hard to limit the rally.
The weekly chart above shows the price testing the important resistance area below $20. A daily close above this level could prove the start of a new uptrend. However, RSI has exceeded the threshold to enter overbought territory. This may cause your level to drop, which in turn may drag your level down slightly. However, this may only be a short-term measure and may soon be overwhelmed by the uptrend.
Therefore, Chainlink (LINK) price could fall below $19 if the bearish action strengthens and starts a new uptrend and heads towards a higher target, perhaps near $30.