Chainlink's 4.11% Price Hike to $7.81: All Key Takeaways for July 29, 2023

Chainlink's LINK token rose 4.11% over the past 24 hours to $7.81, recovering some of the ground lost during its 2.65% decline over the past week. The price uptick brings LINK back towards a key resistance level around $8.00, which has capped upside moves over the past month.

The recent consolidation comes on the heels of a powerful 26% rally in July, which saw Chainlink surge from under $6.00. However, LINK has struggled to build on those gains as crypto sentiment turned cautious.

In our analysis, we'll examine Chainlink's latest price action, on-chain activity, sentiment, and market outlook. Key highlights include:

  • LINK stabilizing above $7.50 support after pulling back
  • Trading volume declining as consolidation sets in
  • Whale LINK addresses still accumulating tokens
  • Macro conditions determining short-term price action
  • Resistance at $8.00, with breakout needed to resume uptrend

Is Chainlink Building a Base for Its Next Rally?

Chainlink's LINK token surged higher through most of July, rallying from under $6 to a monthly high above $8.50 on July 14th. However, LINK met selling pressure near that $8.50 resistance zone, subsequently pulling back over the past two weeks.

But importantly, Chainlink has held support above $7.50 during this consolidation period. This gives the cryptocurrency a solid base from which to stage its next potential rally.

Trading volume has declined in recent days as LINK's price action has tightened. This indicates reduced participation and indecision among traders in the current range.

On-chain data, however, shows whale wallets continue building positions. Addresses holding between 1,000-10,000 LINK have added over 450,000 tokens in the past month. This indicates smart money sees value in Chainlink at current prices.

Can Chainlink Rally Back to Its All-Time High This Cycle?

Chainlink posted a tremendous rally in 2021, with its LINK token surging from around $3.00 to an all-time high of $52.88 in May 2021. However, the past year has been brutal for LINK, with the cryptocurrency erasing most of those gains.

LINK currently trades 85% below its peak, leaving many investors wondering if a return to all-time highs is possible this market cycle.

Given the prevailing bearish sentiment, a rally back above $50 seems unlikely in the short term. Chainlink would need a significant improvement in broader market conditions to facilitate such an extreme price surge.

However, if Bitcoin and Ethereum can sustain their recent uptrends, LINK reclaiming its 2022 high near $30 appears feasible. This aligns with the topside of LINK's long-standing range between $7-$30.

For now, traders should monitor if LINK can break above $8.00 resistance. A move above this level would signal bullish momentum is returning to Chainlink.


Chainlink looks attractive following its recent cooldown, which has returned LINK to solid support around $7.50. Bulls have continually defended this area, making it a reasonable level to start accumulating.

However, traders may want to wait for a break back above $8.00 before going long. That would signal the recent pullback has concluded and increase odds of an upside breakout.

Long-term investors could buy LINK below $8.00. While volatility remains elevated, Chainlink's crucial role in bringing off-chain data to smart contracts cannot be overstated. This gives the project an intriguing outlook.

Given Chainlink's entrenched position in DeFi and blockchain networks, a rally back to its $50+ all-time high seems feasible over the long-term. This would require around a 6x gain from current levels.

However, a return to former highs may take multiple years and require the ideal bullish conditions. A more reasonable target this cycle could be the $20-$25 zone if momentum improves. But have realistic targets, and be ready for turbulence in the years ahead.

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