Chainlink: Will Nasdaq and CME Drive LINK's Price Back to $15?

In a recent announcement, Nasdaq and the CME Group introduced the Nasdaq CME Crypto Index, highlighting significant digital assets like Bitcoin, Ethereum, and Chainlink. This update arrives at a crucial moment for LINK, potentially influencing its price movements in the short term.

Key Takeaways

Nasdaq and CME Group launched a new crypto index, including Chainlink.
LINK is currently situated near a significant market imbalance zone around the $13 mark.
On-chain metrics indicate increased activity, suggesting potential preparation for a price shift.
A liquidity cluster at the $15 mark could act as a price target for LINK.
Chainlink’s position alongside Bitcoin and Ethereum reinforces its credibility in the crypto market.

Chainlink - Will Nasdaq CME news push LINK's price to $15 again?

Navigating a Key Market Imbalance

As of now, LINK's price is retracting into a crucial market imbalance zone around $13. This level has previously served as a launchpad for LINK’s upward movements. As the price approaches this area again, selling pressure appears to be weakening, indicating the potential for a reversal. Buyers seem to be cautiously testing the waters rather than hastily jumping in.

Additionally, momentum indicators support this scenario. The Stochastic RSI is nearing the oversold territory, a common condition indicating seller exhaustion. Generally, when the Stochastic RSI reaches such levels during stable market conditions, the likelihood of price reversals tends to increase.

LINK price analysis Source: TradingView

Insights from On-Chain Metrics

Looking at on-chain activity provides further insights. LINK's circulating token turnover saw an increase of approximately 5% over the past 24 hours. Typically, a rise in circulating turnover during a price retracement is a sign of strategic positioning by investors rather than panic selling. In the case of LINK, this uptick suggests that investors may be gearing up for a directional shift.

LINK circulating turnover Source: Token Terminal

The Importance of the $15 Liquidity Cluster

An analysis by AMBCrypto shows a significant short-term target for LINK, pointing to a liquidity cluster valued at around $1.32 million near the $15 price level. These clusters often act as price magnets, suggesting that if momentum builds from the $13 zone, this liquidity area could become the next target.

LINK liquidity heat map Source: Coinglass

It’s also essential to consider the institutional aspect of this development. The partnership between Nasdaq and the CME for this index places Chainlink within the realm of regulated finance. More importantly, having LINK categorized alongside Bitcoin and Ethereum elevates its status beyond just another experimental altcoin, suggesting it may soon play a vital role in the broader cryptocurrency infrastructure.

Nevertheless, the final verdict lies within the price chart. LINK must hold above the daily imbalance zone to sustain the expectation of a price reversal.

Conclusion

In summary, Chainlink is at a pivotal juncture, influenced by both market dynamics and institutional support. Investors keenly watch for improvements in its price action, especially as it navigates the crucial levels that could dictate its future trajectory.