Chainlink (Link) was down by 2.45%, having traded at $11.76 as of Monday, 26 January, according to CoinMarketCap data. The asset also witnessed losses of 7.95% over the past week and 3.97% in the last month.
Meanwhile, the daily trading volume reached $490.79 million, representing a rise of 165% from the previous day’s session. The rise in trading volume was attributed to the retracement in the key demand area, where the asset had found support on previous occasions.
Source: CoinMarketCap
LINK Retests Key Demand Zone
Crypto Woodyz, an analyst, highlighted that Link is now testing the $11.8-$12.2 demand cluster, which has previously acted as strong support for the asset in past cycles. A clean bounce from here could see it test the mid-channel range and $14.9 resistance, which has recently acted as a cap for the asset.
Source: X
However, another analyst, Rose Premium Signals, mentioned that the LINK cryptocurrency once again reacted to the major historical demand area. According to her, the area triggered a major rally in the past. It is also clear that the cryptocurrency is accumulating after the prolonged consolidation.
Also Read: Chainlink Slides as Volatility Spikes, LINK Tests $12 Support Zone
Rose identified the upside targets, assuming the support holds, to be $16.13, $20.09, and $24.52. However, she noted that the outlook also applies as long as the price of the token stays above the demand floor.
Source: X
On-Chain Metrics Improve as Open Interest Declines
According to Santiment, on-chain data shows that Link remains an undervalued asset. Additionally, the 30-day MVRV for cryptocurrency is recorded at -9.5%. During this time, the asset is expected to stabilize due to a decrease in sell-offs.
Meanwhile, CoinGlass data show that the total volume rose by 182.70%, to the level of $855.95 million, with the Open Interest decreasing by 2.19%, to the level of $529.25 million. The OI-weighted funding rate of 0.0027% indicated a mildly positive bias.
Source: CoinGlass
The price is currently at a key point for cryptocurrency. The present support band is significant. The price may fall if the token breaks this support band, while an upsurge may take the altcoin up through other resistance points.
Also Read: XRP Nears $1.75 Support, Bounce Could Push Price Towards $2.60
