The Chainlink (LINK) price has recently experienced significant bearish pressure, falling to $17 for the first time since November 2024. This decline was triggered by broader market volatility, with Bitcoin dropping to $92,000 amid fears of a potential trade war sparked by US President Donald Trump’s tariffs. However, despite the initial 32% slump, the LINK token has shown signs of recovery, currently trading above $18.
Although Chainlink appears to be set for a bullish recovery, its price movement has been sluggish over the past few days. This slowdown may be attributed to a crucial resistance level at $23.78, which could prove pivotal in determining the start of a fresh bull run. Prominent crypto trader Ali Martinez recently highlighted this key level on the X platform, basing his analysis on the average cost basis of numerous LINK investors.
According to data from IntoTheBlock, approximately 96,760 investors purchased around 110.43 million Chainlink tokens within the $20.96 to $26.25 price range, at an average price of $23.78. This high purchasing activity has created a supply barrier within this region, as investors may be inclined to sell their tokens once they break even, potentially hindering further price increases.
For Chainlink to initiate a new bull rally, it is crucial for the price to successfully breach the $23.78 resistance level. If the buying demand can overcome the potential selling pressure from investors looking to exit their positions, LINK could gain the momentum needed to continue its upward trajectory. However, if the $23.78 level proves to be a formidable barrier, the price may continue to consolidate or even face a potential pullback.
Investors and traders should closely monitor the Chainlink price action around this key level, as a decisive move above $23.78 could signal the beginning of a new bullish phase for the token. Additionally, the overall market sentiment and developments within the Chainlink ecosystem may also influence the token’s price performance in the near future.
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Tags: Chainlink price, LINK, resistance level, bull rally, IntoTheBlock, Ali Martinez, technical analysis