Chainlink Eyes $29 Rebound—But Needs to Clear This Critical Hurdle First

Chainlink’s LINK token is flirting with a potential rally back to $29—a level not seen since the 2024 bull run. But before traders pop the champagne, the oracle network’s native asset must smash through stubborn resistance at $25.

Market watchers note that LINK’s recent 18% surge mirrors its Q1 2025 performance, when it briefly became the top-performing altcoin. Yet the token remains 60% below its all-time high, a sobering reminder that even ’blue-chip’ cryptos aren’t immune to bear markets.

Technical indicators suggest the coming week could be decisive. A clean break above $25 with sustained volume might confirm the uptrend—while rejection here could see LINK retest $20 support. Either way, futures traders are already positioning for volatility, with open interest climbing 30% in 48 hours.

Funny how these ’decentralized’ oracle networks still depend on good old-fashioned market psychology. Maybe Wall Street’s algorithms aren’t so different after all.

Source: Glassnode

The Net Unrealized Profit/Loss metric sank to capitulation levels in the first week of April. At that time, LINK was trading at $11. Since then, the metric’s movement has been reminiscent of the August-September 2024 stretch.

That period marked a local market bottom before a sizable rally propelled Chainlink prices to $29. The NUPL highlighted that bearish sentiment was prevalent.

Should investors expect another rally in the coming months?

The chances of a Chainlink recovery are good

Source: Glassnode

The 7-day Moving Average of the Net Transfer Volume to/from Exchanges metric has been showing red since the final week of March. These negative values denote LINK Flow out of exchanges, and tie in with the exchange reserve reduction noted earlier.

The steady flow of Chainlink tokens from the exchanges indicated an investor’s desire for HODL. This was a bullish sign, but it does not promise an immediate rally.

Source: IntoTheBlock

Data from IntoTheBlock revealed a drop-off in large transactions over the past three weeks. Combined with the LINK flow out of exchanges, it reinforced the idea of reduced selling pressure from large players and steady accumulation.

At the same time, it also showed that whales were hesitant to buy and were waiting for clearer market trends to exploit. Investors have reason to be cautiously bullish in the long term.

Source: LINK/USDT on TradingView

The 1-day price chart showed a range formation between $10.8 and $15.5. Over the past ten days, Chainlink witnessed rejection from NEAR the range highs and was falling toward the mid-range support at $13.18.

Yet, since March, the OBV has been trending higher, signaling increased buying volume. An OBV uptrend during an extended consolidation phase is bullish for Chainlink, and promises a rally beyond the range highs in the coming weeks.