Chainlink (LINK) Price on the Verge of a Breakout? Analyst Targets $22

Chainlink (LINK) price is currently trading at $11.60 following a 3.66% gain in the past 24 hours. Despite the recent gains, LINK struggles to surpass the crucial $13 resistance level, raising concerns over its ability to sustain a breakout in the short term.

Will Investor Interest Be Enough to Break LINK Resistance?

The Global In/Out of the Money (GIOM) indicator reveals that approximately 106.89 million LINK tokens were accumulated between $11.61 and $13.24, representing over $1.2 billion in supply. However, the lack of strong buying pressure hinders LINK’s price movement.

For LINK to see further upward movement, the asset must flip the $13 resistance into support.

Meanwhile, Chainlink’s open interest rose 4.3% to $162.05 million, signaling increased activity in its derivatives market.

Analyst Targets $22 Amid Weak Momentum—Can LINK Defy the Odds?

The weakening uptrend momentum further adds to LINK’s price challenges. The Average Directional Index (ADX), which helps measure the strength of a trend, shows a reading below 25.0. This indicates that the current uptrend in LINK’s price is losing momentum, potentially signaling a period of consolidation or a reversal if the trend continues to weaken.

Santiment data shows Chainlink’s 90-day Mean Coin Age (MCA) is rising, indicating that investors are holding onto their tokens, reducing selling pressure. However, this doesn’t necessarily guarantee a price rise without an increase in demand.

Despite weak momentum, the 4-hour LINK/USDT chart shows signs of buying pressure, with consecutive green bars in the Cumulative Volume Delta (CVD).

Crypto analyst CryptoJack suggests that if Chainlink (LINK) price can rebound from the $6 support level and break out from its current wedge pattern, there’s potential for the price to surge up to $22.

Fundamentally, Chainlink’s collaboration with zkSync, introducing its Cross-Chain Interoperability Protocol (CCIP) on the ZK mainnet, strengthens its position within the blockchain ecosystem, enhancing its interoperability capabilities.