- LINK’s price declined by more than 7% in the last week.
Market indicators hinted at a few slow-moving days.
As an experienced analyst, I have seen my fair share of market ups and downs. The recent decline in Chainlink’s [LINK] price was a setback for many investors, myself included. However, after closely monitoring the market indicators, I am cautiously optimistic about LINK’s future prospects.
Following several challenging days, Chainlink’s [LINK] token exhibited promising signs of bouncing back. This improvement became evident when the token successfully broke free from a bullish trendline, potentially leading to new record highs for LINK in the near term.
Chainlink’s bullish breakout
According to the latest figures from CoinMarketCap, the price of the token has dropped by over 7% in the past week. Additionally, there was a decrease of approximately 1.3% in its value within the previous 24 hours.
Currently, the value of LINK is being exchanged for $14.27 in the market, and its total worth stands at an impressive $8.37 billion.
Based on my observation as a crypto investor, the recent price drop forced many individuals, including myself, into taking losses on our Chainlink investments. According to IntoTheBlock’s latest analysis, approximately half (46%) of us were fortunate enough to still be in profit. Nevertheless, there remained potential for a turnaround in the trend.
Previously, according to AMBCrypto’s report, LINK had been confined within a bullish wedge formation since April. Fortunately, the token successfully breached this consolidation pattern.
Recently, World of Charts, a well-known cryptocurrency analyst, drew attention to a potential breakout for Chainlink (LINK). If this pattern holds true for LINK, investors can expect a significant price increase of approximately 42% within the next few weeks, potentially reaching a value of $22.
Will LINK reach $22?
After the optimistic price surge, AMBCrypto intended to examine its relevant on-chain information.
After a significant decrease on June 18th, Santiment’s data showed an enhancement in LINK‘s MVRV ratio based on our examination.
As a researcher examining the data, I’ve noticed an uptick in positive sentiment surrounding LINK based on its weighted analysis. This signifies a decrease in negative sentiment or bearishness towards the token. Additionally, there has been a noticeable growth in LINK’s network recently.
This meant that more addresses were created to transfer the token.
Despite this, it appeared that some investors were pondering over selling Chainlink. A subtle uptick in the amount of LINK tokens available for trading on exchanges hinted at this possibility.
As a researcher observing an uptick in selling pressure for AMBCrypto’s investment in Chainlink, I decided to delve deeper into its daily chart for insights on the token’s potential future performance.
Based on our examination, there was a potential for an increase in LINK‘s price when it reached the bottom boundary of its Bollinger Bands.
As an analyst, I’ve noticed that the market indicators for LINK have been suggesting a potential lull in its performance. Specifically, its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have remained relatively stable below their neutral thresholds.
Realistic or not, here’s LINK market cap in BTC’s terms
If the price of LINK shifts to a bullish trend, it may need to surpass some significant resistance levels before reaching a potential target of $22. According to Hyblock Capital’s analysis, a notable increase in liquidations for LINK is anticipated around the $14.8 mark.
Normally, large sell-offs can lead to temporary decreases in price for LINK. The cryptocurrency may encounter resistance around the $15 mark, surmounting which could pave the way for LINK to reach and even exceed $22.
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2024-06-21 12:07