- Chainlink is testing the $20 resistance level with 61.7% monthly gains but faces strong supply and overbought RSI levels.
- Market-wide momentum and ETF-driven rallies have boosted LINK, with other tokens like BTC, XRP, and BNB hitting new highs.
- A BTC correction to $110,000 could delay LINK’s breakout, though bullish macro trends may keep upside potential intact.
Chainlink is showing signs of hesitation as it tests the $20 resistance zone, a level last attempted in mid-February 2025. Despite solid upward momentum—2.1% in the past 24 hours, 17.3% over the week, and a 61.7% rally over the past month—LINK appears to be contending with significant supply pressure. This price level has historically triggered selling, and the current stall suggests traders may once again be preparing to book profits.
Market-Wide Momentum Is Fueling LINK’s Rally
LINK’s recent rally rides on the back of bullish sentiment across the broader crypto market. Major tokens like Bitcoin, XRP, and BNB have recently posted new all-time highs, reflecting increased investor appetite and institutional inflows into crypto ETFs. Regulatory tailwinds in the U.S. have also played a role, creating optimism for blockchain innovation and decentralized platforms like Chainlink.
Can LINK Break Through by July’s End?
While a continuation past $20 is possible, technical indicators urge caution. Chainlink’s RSI (Relative Strength Index) has moved into the overbought zone, signaling potential profit-taking by short-term holders. There is visible supply congestion at the $20 mark, making it a critical psychological and technical resistance area. Unless buying pressure overwhelms this resistance, LINK may struggle to break cleanly above it in the near term.
Bitcoin’s Movement Could Dictate LINK’s Next Move
Bitcoin’s pullback from $122,834 to a lower level (currently down 3.8%) could ripple across the market, impacting other major tokens like LINK. If BTC corrects further—potentially down to the $110,000 support due to a supply gap—it could spark a market-wide retracement. For LINK, this may mean a temporary setback before any renewed attempt to break out above $20.
