Chainlink's price movement shows a notable RSI divergence and significant investment from Paxos. Let's examine the factors that might influence its future development.
Current Price Analysis and Technical Indicators
Chainlink recently showed a bullish RSI divergence, suggesting potential price increases. The price reached $21.03 and found support along an ascending trendline. If key resistance levels around $21 are surpassed, it could lead to testing higher levels near $22. The potential formation of a complex 'head and shoulders' pattern also warrants attention, with a critical support level at $20.20.
Liquidation Map and Market Risks
LINK's liquidation map reveals substantial activity at critical price points like $20.98, indicating zones of high liquidity and potential market movement. A breach below the $20.98 level could increase downward pressure, whereas staying above might support a short-term recovery.
Chainlink's Reserve Proof and Paxos Investments
Paxos, a major user of Chainlink's proof of reserve, significantly increased its holdings in LINK, reaching 743,000 tokens. This strategic investment reflects confidence in Chainlink's technology. Such accumulation might encourage other institutions to also consider increasing LINK holdings.
The interplay between technical indicators and institutional investments creates dynamic conditions for Chainlink. Future developments will depend on market responses to key price levels and investment impulses.
