Chainlink Price News: LINK Approaches Key Multi-Year Resistance – Big Move Ahead?

Chainlink (LINK) has emerged as the top-performing crypto in the top 10 in the past 30 days with gains of nearly 26% as it approaches a key resistance that could ignite an explosive move over the next few weeks.

Trading volumes have increased significantly and currently account for 16% of the token’s total circulating supply at $2.7 billion. Data from CoinMarketCap shows that July volumes have already been the second-highest this year with $20 billion.

Meanwhile, August volumes could exceed this year’s record as they seem poised to surpass the $30 billion mark.

CCIP Adoption and Chainlink Reserve Boosted LINK

The narrative that’s fueling this recent rally seems to be associated with Chainlink’s success in getting its interoperability solution called CCIP adopted and implemented by top blockchain protocols.

Moreover, the project has also been securing key partnerships to connect on-chain data sources with off-chain platforms and vice versa as the real-world assets (RWA) continue to grow.

Chainlink is uniquely positioned to capitalize on this trend through solutions like CCIP and Data Feeds.

The developing team also announced the launch of the Chainlink Reserve, a program that will systematically acquire and hold LINK tokens by using off-chain revenue. According to the latest update, LINK has amassed 109,664 tokens already through this initiative with a dollar value of $2.8 million at today’s prices.

LINK’s Rally Is About to Face a Big Test

Looking at the weekly chart, LINK is about to hit a major resistance level at around $27.5. In our previous price prediction, we anticipated a move to $30 for LINK back when the token was trading at around $23.5.

LINK/USD Weekly Chart (Coinbase) – Source: TradingView

At its current price, that prediction has already produced a 13% gain in just 8 days as LINK’s rally kept going despite the latest wave of bearish momentum.

This move to $30 seems highly likely, even if it means surpassing the token’s weekly trend line resistance. The question is, will LINK break above that line or retreat strongly?

Key trend line resistances in high time frames tend to be quite impactful for an asset’s mid-term price trajectory. Hence, if we get a bullish breakout, the odds that this will lead to a much more explosive move, possibly toward the $38 – $40 range, will increase dramatically.

Positive momentum is increasing as we get close to this level. The Relative Strength Index (RSI) in the weekly chart can still keep going for a while before entering overbought territory and the MACD has been on an uptrend for three weeks in a row already.

Meanwhile, no signs of exhaustion have popped up in this high time frame.

Bullish Engulfing Candle Pops Up After Brief Drop

Heading to the daily chart, the price has just hit a daily resistance at around $27. The price initially retreated off this mark but a bullish engulfing candle has emerged today that could make its way above this level within the next few hours.

The $30 psychological threshold is the key to watch in this time frame. A move above it will set the course for a much bigger move and could possibly blow up a significant amount of long-dated short positions in the process.

LINK has underperformed other altcoins for years but this dormant giant seems to be getting ready to make a comeback as altcoin season kicks off.