Chainlink Price Targets Rebound After Liquidity Sweep: Is $38 Next?

• Chainlink crypto grabbed liquidity and primed for a massive rebound.
• LINK price displayed accumulation and could reach $38 in the coming days.

Chainlink (LINK) recently saw volatile swings as the liquidity hunt put traders in a dilemma. The recent price decline indicated a liquidity grab below $22. This further suggested that the Chainlink price may be preparing for a significant move toward $28 and beyond.

This substantial price activity was consistent with speculators seeking liquidity before a major upward surge. The Chainlink crypto traded at $23.24 at press time, noting a drop of over 3.70% in the past 24 hours. Its market cap stood at $14.83 Billion, ranking 11th in the overall crypto market.

Liquidity Grab Followed by Sharp Reversal: Opportunity or Trap?

This week, the Chainlink price experienced a downswing to $22.60. It enabled market participants to liquidate their stop losses below prior lows. This significant shakeout occurs before the market reversals as weak traders exit, leaving space for institutional investors to participate.

As the price action showed, Chainlink crypto has made multiple bottoms around the $20-$22 zone and signals a quick bounce ahead. Historically, when such liquidity grabs happened before, LINK prices witnessed a major price pump ahead.

Leveraged positions tend to get sold in market transactions, which triggers stop losses and fuels a strong upward movement. Past cycles revealed that the Chainlink price had a strong recovery following the consolidation and correction phases.

According to analysts, significant selling pressure may be exhausted following the liquidity sweep. Furthermore, a fresh bullish wave could emerge next.

On-Chain Data Sees Uptick in Network Activity

In the last 48 hours, the number of large transactions involving LINK has surged to 689, totaling $560 Million. This renewed interest in whales indicates fresh accumulation, often preceding an upward price movement.

The heightened participation from whales suggested that the Chainlink price may see significant upward movement in the coming days. This participation was combined with rising retail interest.

Furthermore, Chainlink’s new adoption rate is rising, close to a 30-day high of 37%. As more users join the network, it represents a rise in popularity and accessibility.

Typically, when this metric rises, it shows that more users are interacting with the network. This further creates growth opportunities within the blockchain.

Chainlink Price Prediction: Are Bulls Gearing Up for Action?

According to a recent post on X by More Crypto Online, Chainlink Crypto painted a promising chart. It exhibited a strong support of around $20, the 61.8% Fibonacci retracement level.

Furthermore, it has completed the 2nd corrective wave and is primed for a rising 3rd wave. However, confirmation came when the Chainlink price broke above $26.40. This could pave the way toward $38 in the short term.

Going forward, the Open Interest (OI) has shed over 3.20% alongside the price decline. This implied a long, unwinding move in the past 24 hours.

Until the support zone of $20 is breached, the upward trend remains intact. Furthermore, the altcoin may face some volatility in the next sessions.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.