Will Chainlink (LINK) Bulls Pump Price By Over 100% in 2024?

Chainlink LINK bulls 2024
Chainlink LINK 2024

NEW DELHI (CoinChapter.com) — Chainlink (LINK) bulls are speculating a 100% rally shortly, likely encouraged by positive market sentiments following the Bitcoin spot ETF launch.

Chainlink proponents have been active on social media, with one LINK trader claiming that Chainlink is “the God protocol” regarding bullishness. Moreover, LINK’s exchange reserves have reached their lowest levels since June 2022, per data from Cryptoquant.

A decline in an asset’s supply on exchanges usually denotes a hodling mentality among investors, which squeezes the asset’s supply, boosting its prices.

Furthermore, Chainlink’s collaboration with DTCC could result in some interesting developments. A crypto Oracle account on X speculated that “Self-custody cross-chain tokenized ETFs” might be coming soon to the DTCC (Depository Trust & Clearing Corporation).

Another bullish cue for LINK price comes from a bullish technical pattern called the ‘bull flag.’

Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.

LINK bullish pattern might attract Chainlink bulls
LINK price formed a bullish technical pattern with a 174% upside target. Source: Tradingview.com

A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.

The pattern is completed when the price breaks out of the flag area, continuing the previous upward trend.

Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, GRT price might rally over 174% to reach the theoretical price target near $41.8 if the Chainlink token confirms the pattern.

The Chainlink token has been facing increased bearish pressure as it struggles to break above the $16 price level following the Jan. 3 flash crash. However, LINK bulls are working to ensure the token stays above the 20-day EMA (red wave) dynamic support.

LINK price spiked over 4% to reach a daily high near $15.3 on Jan. 12.

Chainlink bulls pushing price above EMA support
LINKUSD daily chart with RSI. Source: Tradingview.com

LINK price could bounce to the resistance near $16.54 if it confirms the pattern. Moreover, breaking and consolidating above the immediate resistance might help the Chainlink token price reach the resistance near $18.77 before retreating.

Conversely, if bulls fail to hold the LINK price above the EMA support, the token might drop to the 50-day EMA (purple wave) near $14.3. Breaching the immediate support level might result in LINK price testing the support near $12.38.

The RSI for LINK remained neutral, with a score of 53.02 on the daily charts.

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