Chainlink Bulls Charge: Can LINK Smash Through $18 Resistance?

Chainlink’s native token LINK is flirting with $18—again. After a 30% monthly pump, traders are betting the oracle giant’s momentum isn’t done yet. But with the ’smart money’ quietly rotating into AI tokens (because apparently blockchain needs more buzzwords), the real question is whether this rally has legs.

Technical indicators show bullish divergence on the 4-hour chart, while on-chain data reveals whales accumulating at key support levels. Still, that $18 mark has rejected LINK three times since March—because nothing says ’crypto’ like watching digital assets faceplant at psychological price barriers.

If the breakout holds, targets cluster near $22. If not? Well, there’s always another ’institutional adoption’ press release waiting in the wings.

Source: Glassnode

For the uninitiated, the MVRV Z-Score is a metric that evaluates whether an asset is undervalued or overvalued relative to its “fair value”.

Historically, bottoms appear when market value drops well below realized (i.e., total invested) value.

The MVRV Z-Score’s drop into the green zone occurred last on the 8th of April. At that time, the price of Chainlink was at $11.3. Since then, LINK has rallied 49.5%.

The bullishness around Bitcoin [BTC] has also helped the altcoin’s cause.

LINK movement on-chain signaled distribution trends

Source: LINK/USDT on TradingView

From a price structure lens, LINK broke past the $15.52 range high established in February (highlighted in white).

The recent breakout beyond the local high saw the token retest the 61.8% Fibonacci retracement level at $18. The $18 retest failed, yet bullish momentum suggests another push is likely.

However, momentum didn’t vanish.

Demand still dominates

Since April, the A/D indicator has been rising, signaling strong and sustained market demand for LINK. This demand could drive LINK’s price higher, marking a clear reversal from its six-month downtrend.

With bullish momentum intact, the token may have room for another upward move.

Source: Santiment

However, there were some warning signs for the coin that could signal potential challenges ahead.

The Mean Coin Age reflected that network-wide accumulation was difficult to maintain. Since mid-March, LINK has seen multiple waves of heavy selling.

The swift drops in the MCA attest to this. The 180-day MVRV ratio was below zero, showing long-term holders were still at a loss.

The Network Volume to Transactions (NVT) Ratio fell rapidly over the past week. Yet, its spiky behavior since March points to irregular transaction volumes.

At press time, high volume transfer bolstered investor spirits, and the token was not overvalued according to the NVT.