The crypto space is gearing up as the Bitcoin price is displaying significant strength, being self-assured of displaying a fine price action. Chainlink’s price faced a huge rejection in the first few weeks of January 2022, which caused a massive drop from the crucial support. However, with the latest price action, the price has entered the same support-turned-to-resistance level between $18.28 and $19.42.
Now that a huge bullish momentum has mounted over the crypto, will the LINK price close beyond $20?
The LINK price has been displaying its strength in times when the border crypto markets, including the Bitcoin price, are stuck within a range. One of the main reasons behind this surge may be the surging optimism among traders. The traders tend to become confident when whales begin to accumulate, which has been observed since the last week of January when the price soared above the consolidation below $16.
As per the data from Coinmetrics, the supply in the top 1% of addresses, which can be considered whale addresses, has begun to accumulate since the last week of January. The supply in their wallet soared from 924.3 million to levels close to 925 million. This was when the LINK price broke the consolidation zone that it had traded for nearly three months. With this, the price enters the crucial resistance zone, but the bears are also trying hard to restrict the rally.
The above weekly chart displays the price testing the crucial resistance zone below $20. A daily close above these levels may certify the beginning of a fresh upswing. However, the RSI is above the threshold to enter the overbought zone. This may cause the levels to undergo a pullback, which may in turn drag the levels slightly down. However, this could be a short-term action, which could be outpowered by the bulls in no time.
Hence, the Chainlink (LINK) price could drop below $19 if the bearish action intensifies and further begins with a fresh upswing and heads towards higher targets, probably close to $30.
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