Chainlink Price Prediction: Can LINK Reclaim $22 Resistance?

Will Chainlink Reclaim $22? As Investors Accumulate

Chainlink (LINK) is showing signs of stabilization after a sharp correction from its impressive highs. The altcoin rose to a high of $28 before dropping to the mid-range of $17, where buyers are centered. Analysts suggest that the current consolidation could be the foundation of a recovery, with targets on the upside at the $20-$22 zone if momentum improves.

LINK has a clear retracement structure on the daily chart following months of bullish movement earlier in the year. The token found a local bottom near $15 and has since rebounded to the $18-$19 zone, where there is a balance between renewed demand and lingering selling pressure. Momentum indicators point to a reversal with the MACD line edging closer to a bullish crossover, which indicates that downward momentum is weakening. The gradual squeezing of the histogram in the neutral direction confirms the view that selling is over and buyers are regaining ground.

LINKUSD 1D CHART | SOURCE: TradingView

Meanwhile, the Stochastic RSI is showing a short-term bullish signal with the potential for further upside before reaching levels of overbought conditions. This confirms a possible re-test of the $20-$22 resistance zone, which is in line with past highs. 

Analysts, however, warn that the inability to hold support above $17 risks a downside to $15 or even lower, signifying this as a key level to the current recovery. The technical environment indicates that Chainlink is on the verge of breaking out as soon as confidence is built.

Chainlink Investors Reaccumulate

Additionally, on-chain data indicates an increasing accumulation trend among long-term owners besides the price action. The cost basis distribution also demonstrates that there is heavy concentration around the range of $16.10 to $16.20, where more than 54.4 million tokens were last transacted. This range is a good support zone, as most investors will not sell at a loss at these levels. The lowering of the cost basis density shift also suggests that the market is establishing itself in a new accumulation phase following months of profit-taking.

Cost Basis Distribution Heatmap | Source: X

Furthermore, with the broader crypto market stabilizing after the recent volatility, sentiment towards major altcoins is improving. The stability of Bitcoin and the increased liquidity in DeFi markets have contributed to restoring investor confidence, allowing tokens such as LINK to get new inflows.

With the existing support and an ongoing momentum, Chainlink could reclaim the $20 mark and target the $22 mark in the near term. A sustained strength beyond this could lead to mid-term recovery to $24. At the time of press, LINK is trading at around $17.90.