Chainlink (LINK) Gains 1.91% as Bulls Target $20 Breakout

Chainlink (LINK) is drawing renewed market attention as it approaches the $18.38 level, with traders watching for signs of a potential breakout above $20. Following a rally from under $13 in July, the token has consolidated within the $17–$18 support zone after briefly surpassing $19 [1]. The price is currently hovering just below the 20-period Bollinger Band simple moving average of $18.05, while the next key resistance level is near $19.17 [1]. Breaking past this threshold could open the door to $20.22 in the short term.

The optimism surrounding Chainlink is driven by growing adoption of blockchain-based oracle services and anticipation of broader macroeconomic developments in the crypto market [2]. Recent regulatory signals, including the U.S. government’s Digital Asset Report, have highlighted Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as a key innovation for blockchain communication [1]. This recognition has bolstered investor confidence amid the ongoing pursuit of regulatory clarity.

Market sentiment has also been influenced by the potential approval of Ethereum-related ETFs. While no final decisions have been made, the broader crypto industry has seen increased institutional interest, with analysts suggesting that a favorable regulatory environment could catalyze the next move for LINK [3]. On-chain data indicates a 4.25% decline in market cap over the past 24 hours, reflecting short-term volatility [4]. However, trading volume has surged to $610.33 million, with LINK gaining 1.91% in a single day and 1.73% on a weekly basis [1].

Technical indicators also support a bullish outlook. The Relative Strength Index (RSI) has climbed to 49.38, signaling rising buyer interest [1]. Meanwhile, the 7-day and 30-day simple moving averages stand at $18.20 and $16.33 respectively, further reinforcing the bullish trend as the price reclaims these key levels [1]. Analysts at Mitrade project that LINK could rise above $18 in the near term and test resistance levels between $22 and $28 by August, assuming market conditions remain supportive [5].

The broader crypto landscape is also shaping market psychology. While some traders are shifting focus to emerging tokens like Remittix (RTX), Chainlink’s institutional-grade infrastructure and use cases continue to attract long-term investors [6]. Whale activity and on-chain accumulation suggest major players are positioning themselves ahead of potential price moves.

Despite the positive momentum, caution is necessary. Net inflows into ETFs have declined by 80% in the past week to $496 million, while trade volume has dropped to $18.7 million, signaling a period of reduced liquidity and potential uncertainty [7]. However, if Chainlink successfully breaks out of its current trading range and confirms a new bullish trend, it could mark the start of a more expansive phase for the token.

A sustained breakout above $20 would not only validate current bullish expectations but also reinforce Chainlink’s role as a key player in the blockchain infrastructure space [1]. The convergence of favorable technical setups, institutional interest, and macroeconomic tailwinds makes the coming days crucial for traders and investors alike.

Sources:

[1] https://coinmarketcap.com/community/articles/688b679332fd41286026ce60/

[2] https://www.mitrade.com/insights/news/live-news/article-3-991731-20250728

[3] https://www.mitrade.com/au/insights/news/live-news/article-3-993658-20250729

[4] https://www.bitget.site/price/chainlink

[6] https://coinjournal.net/news/xrp-price-prediction-ripple-etf-buzz-builds-yet-whales-are-quietly-loading-up-on-remittix-rtx/

[7] https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-flat-as-dogecoin-xrp-ethereum-slide-tron-defies-broader-crypto-slump/cho9uu0R5Up