- Chainlink price aims for a significant rebound as the TD Sequential indicator just presented a buy signal.
- On-chain metrics indicate that there is not a lot of resistance on the way up.
- The number of large holders has decreased which could be a red flag.
Chainlink price has seen a massive rebound in the past 24 hours as the entire cryptocurrency market recovered significantly. The digital asset doesn’t face a lot of resistance ahead.
Chainlink price could explode to $40
On the daily chart, the TD Sequential indicator has presented a buy signal in the form of a red ‘9’ candlestick. LINK has already passed through the 50% Fibonacci retracement level at $34.
LINK/USD daily chart
The In/Out of the Money Around Price (IOMAP) chart only shows one significant resistance area between $35.4 and $36.45 where 6,120 addresses purchased 12.5 million LINK. A breakout above this point should quickly drive Chainlink toward the 61.8% Fibonacci retracement level at $36.4 and up to $40 at the 78.6% Fibonacci level.
LINK IOMAP chart
Additionally, the MVRV (30d) ratio which shows the average profit or loss of LINK tokens moved in the last 30 days, remains in the ‘buy zone’ which gives bulls a lot of room to work with before Chainlink could be at risk of a correction.
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LINK MVRV (30d) chart
Chainlink remains inside a descending parallel channel on the 4-hour chart. This pattern can be drawn by connecting the lower highs and lower lows with two parallel trend lines.
LINK 4-hour chart
LINK faces a significant resistance level at $35.9 where the 50 and 100 SMA coincide. A rejection from this point will most likely drop toward $29.
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