Chainlink Price Prediction: LINK Eyes $23 as Bullish Sentiment Rises

Highlights:

• Chainlink is gaining upside momentum after establishing strong support at $19.35
• Rally off the $19.35 support puts the $23 resistance in focus
• Rising bullish momentum across the market could see LINK soon test $23

Chainlink (LINK) is rebounding today, in line with the rest of the cryptocurrency market. After starting the week in the red, the cryptocurrency market is in the green today. The total cryptocurrency market has jumped by 2.41% to stand at $3.31 trillion. Chainlink, riding on this momentum, is up by 5.14% in the day and, at the time of going to press, was trading at $19.74.

Chainlink trading volumes are also up in the day, edging higher by 50.57% to $755.36 million. This shows that interest in Chainlink is on the rise as investors look to take advantage of the recent market dip.

On-Chain Metrics Bullish for Chainlink Price

Analysts are also increasingly bullish that Chainlink could be headed for a breakout in the short term. This is based on on-chain metrics that point to rising bullish sentiment around LINK. For instance, data shows that in the last 24 hours, the number of active addresses on the Chainlink network has increased by 0.86%.

At the same time, transaction numbers for Chainlink have increased by 0.88% in the last 24 hours.  Even more interesting is that exchange outflows remain steady, but reserves are dropping. This points to a possible supply squeeze as the number of LINK tokens in the market shrinks.

Chainlink market data also indicates that open interest in Chainlink has shot up by 5.42% to hit a high of $724 million. This data points to surging buy-side momentum as Chainlink’s price continues to show potential. It is an indicator that a breakout for Chainlink could be within reach in the short term.

Such a breakout could be supported by the fact that Chainlink tends to follow a path independent of the broader market. This means even if the rest of the market were to stay in consolidation for longer. Chainlink could easily stand out as a lone ranger with elevated bullish momentum in the short term.

Chainlink Continues to Grow in Adoption

Besides on-chain factors supporting a potentially big move for Chainlink, core fundamentals point to the same as well. Chainlink is by far one of the fundamentally strongest altcoins by virtue of its use case in decentralized data oracles. This use case has seen it continue to gain adoption. The latest to adopt Chainlink is CycleX. Through their official X page, the Chainlink team announced today that CycleX will now be using Chainlink Standard for all its cross-chain needs. 

.@CycleXTeam has adopted the Chainlink standard for cross-chain interoperability to help users access its CATF token cross-chain.

CycleX also plans to leverage Chainlink CCIP to power its tokenized fund solutions and bring RWAs onchain. pic.twitter.com/p9AynikC9Q

— Chainlink (@chainlink) January 14, 2025

Through this move, CycleX wants to make it easier for users to use their CATF token on multiple chains seamlessly. Chainlink is also working to make itself even more attractive to institutions looking to have a presence in the blockchain space.

Yesterday, January 13, the Chainlink team announced that they could be looking to obscure gas fees for their institutional users to make the adoption process much smoother. This is a big deal as it could push up the adoption of LINK, especially by large corporations looking for a simplified way to interact with the blockchain.

“Our fundamental view at Chainlink is that if organizations don’t want to interact with gas … then we obfuscate that away from them.”

How Chainlink can abstract away gas payments for institutions: pic.twitter.com/YUrLrzv9D1

— Chainlink (@chainlink) January 13, 2025

Technical Analysis – LINK Rallies Off Support as Sentiment Turns Bullish

From the charts, Chainlink price could be headed for a major rebound. After a major correction yesterday, January 13, Chainlink bears were sharply rejected at $17.83. This rejection has seen Chainlink establish strong support at $19.35.

If the current bullish momentum continues, the key level to watch for Chainlink would be the weekly resistance at $23.75. A rally through this resistance could pave the way for a rally to $29.27 in the short term. With Bitcoin appearing to stabilize the market, the odds of Chainlink’s price hitting the $23.75 resistance in the short term are high.