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- Chainlink’s Bollinger Bands squeeze and Netflow shifts signal the potential for a major price move, with a breakout or breakdown likely.
- LINK’s MACD and RSI suggest downward pressure, but oversold conditions could set the stage for a short-term rebound.
According to a CNF report, Chainlink (LINK) is currently experiencing heightened volatility. Key technical indicators suggest that a major price shift may be on the horizon. The cryptocurrency’s market dynamics, including a squeeze in its Bollinger Bands and fluctuations in trading volumes, signal an upcoming breakout or breakdown.
The 12-hour Chainlink (LINK) chart shows that the token is experiencing a squeeze in its Bollinger Bands. This technical pattern often signals upcoming volatility, as narrowing bands lead to price movements. Both breakouts and breakdowns are common outcomes following such squeezes, making it a key signal for traders anticipating a sharp price shift.
Ali Martinez, a crypto analyst, pointed out that LINK’s price is hovering around $19.40, trapped in a narrow range. This stagnation implies that the market awaits a catalyst to spark a larger move. As the Bollinger Bands continue to tighten, the cryptocurrency’s price may be preparing for a breakout or breakdown, with the direction still uncertain.
The Bollinger Bands are squeezing on the #Chainlink $LINK 12-hour chart, signaling that a high-volatility move could be imminent! pic.twitter.com/nP4yjvAnyK
— Ali (@ali_charts) February 17, 2025
Netflow and LINK’s Price Movements
Adding to this sentiment, the flow of tokens into and out of the market, known as netflow, also impacts Chainlink’s price. Looking at LINK’s inflows and outflows from April 2024 to February 2025 shows a clear connection between these netflow shifts and the corresponding price fluctuations.
As reported in our previous post, from late April to early May 2024, LINK experienced a large influx of tokens, coinciding with a rise in its price, reaching highs above $30 by mid-May. At the same time, massive outflows in early December 2024 and January 2025 were linked to a price decline, with LINK dipping below $20.
Additionally, the visualized netflow data further shows that periods of strong price volatility are often linked to shifts in netflow. When inflows surge, the increased demand for LINK increases its price. Moreover, when outflows dominate, the resulting market pressure can lead to price declines, reflecting investor sentiment and market-wide factors influencing the cryptocurrency.
Recent Price Movements and Key Indicators
During the time of writing, LINK was trading at $18.20, recording a 5.30% decline in the last 24 hours. This drop follows a brief rally, with the price falling below $19 before stabilizing. The market cap of LINK stands at $11.61 billion, with a 24-hour trading volume of $546.15 million, reflecting an increase of 74.66% in trading activity.
The volume-to-market cap ratio is 4.72%, indicating that while trading volume has spiked, it remains modest relative to the asset’s total market capitalization. With a circulating supply of 638.09 million LINK tokens out of a total supply of 1 billion, the market’s available supply plays a crucial role in price movements.
Further analysis of LINK’s technical indicators, including the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), reveals that the token may face continued downward pressure.
The MACD histogram shows decreasing bullish momentum, with the MACD line now positioned below the signal line, signaling a weakening upward trend. Meanwhile, the RSI stands at 39.08, approaching oversold levels, which suggests that LINK could experience a short-term rebound if buying pressure increases.
