Chainlink is a decentralized oracle network that connects smart contracts to real-world data. LINK’s recent price structure and on-chain reserve growth may support a move beyond $10.85. At press time, the coin is trading at $8.96 with a decrease of 2.9% over the past 24 hours.
LINK Price Structure Towards Resistance of $10.85
Based on the TradingView chart, Chainlink is forming a consolidation range just below the resistance level of $10.85. The recent price action is creating higher lows, which indicates that buyers are slowly but surely entering the market during dips.
However, due to several rejected attempts through $10.85, it’s clear this will be a strong supply zone. Momentum currently appears to be stable and not aggressive; this means a break above the $10.85 resistance will most likely require sustained volume.
As long as LINK remains above its most recent higher low, there is a logical case for LINK to gradually increase towards the $11.50 to $12.00 level.
Alternatively, if LINK fails to hold onto this level, it is probable that LINK will trade back down to the $9.80 to $10.00 area, where historical demand has been evident.
Also Read: Chainlink (LINK) is Trading Above Key Support Setting Up Toward $10.20 Resistance
LINK Reserve Growth Points to Accumulation
In a recent tweet from Chainlink, they reported how reserves have grown over 121K LINK, roughly equal to about ($1 million including fees). This suggests that there is a probability of larger players accumulating LINK right now.
While the influx of LINK reserve accumulation would suggest a bullish bias, it doesn’t guarantee that we will see a breakout anytime soon.
In addition, the accumulation of LINK reserves may indicates an increase in the average tenure of holding onto LINK versus a sudden movement in price. Therefore, this further suggests that LINK will continue to be accumulated as the overall reserve balance continues to increase, while the chart shows a pattern of consolidation.
Finally, the technical structure and the underlying data suggest the market is set up for some type of price movement; however, the key pivot level will be $10.85.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Chainlink’s Hidden Bull Potential: Could $14–$15 Trigger Rally?
