The popular cryptocurrency network Chainlink’s token, LINK, has exhibited relatively stable behavior this week compared to the broader market recovery. The altcoin’s price recently retreated from the resistance level of $20.85 and fell by 4.46%, currently trading at $19.89.
Resistance Level in LINK
Bitcoin is showing signs of a new correction phase from $52,000, raising questions about whether LINK’s price will drop below the $17 support level. At the end of January, Chainlink’s price witnessed a significant price recovery. The token achieved a 53% increase within a month from the $13.6 support level, reaching the peak of $20.85. However, resistance at this peak led to a price correction towards $19.1, in line with the 23.6% Fibonacci retracement level.
The development of a flag formation on the 4-hour chart of the cryptocurrency could indicate a temporary pause for buyers to consolidate their strength. Notable on-chain activity reported by Lookonchain potentially reveals that 83 new wallets, likely linked to a single entity, withdrew approximately 11,097,687 LINK tokens valued at around $216.4 million from Binance in the last two weeks.
Price Movement in Chainlink
Chainlink tokens’ significant movement could signal a strategic accumulation and point to a potential price surge. Currently, LINK is trading at $19.9 after experiencing a minor drop of 0.6% during the day, following resistance at the upper trend line of the formation.
For those optimistic about the altcoin’s future, a successful breakout above this trend line could be a very important point for recovery. According to experts, a successful exit could increase LINK’s price by 15% from its current trading value of $19.89. Consequently, the popular cryptocurrency Chainlink has shown significant recovery but faced a downturn after encountering resistance. Additionally, crypto experts anticipate potential price increases for the token.
