Following the broader trend of the cryptocurrency market, Chainlink (LINK) experienced a substantial 20.41% price increase over the past week as reported by CoinMarketCap. Notably, analysts from More Crypto Online have identified specific market conditions essential for maintaining this upward price momentum.
Chainlink Faces Potential Correction
In their latest update, More Crypto Online presented a measured analysis of the LINK market, employing the Elliott Wave Theory. This technique suggests that for Chainlink to maintain its ongoing bullish pattern, it needs to stay above $23.85. The Elliott Wave Theory is a popular tool among traders, helping them forecast market movements by studying crowd psychology and recurring market patterns.
In the context of predicting prices, the Elliott Wave Theory frequently outlines two possible situations: the ‘white’ or optimistic scenario (bullish case), where continued price increase is expected as long as the asset remains above the significant support level of $23.85; and the ‘yellow’ or alternative scenario (possibly a correction before further growth), which suggests a potential pause in the upward trend. For the LINK market, the white scenario envisions the upward momentum to persist if the asset maintains its position above the critical support zone of $23.85.
A drop in price below $23.85 might alter market conditions, even temporarily halting Chainlink’s upward momentum. Yet, it’s also possible that we could see a ‘yellow wave,’ which is a term used to describe an initial upturn, followed by a short-term reversal before the trend resumes its bullish path.
Based on predictions from analysts at More Crypto Online, if LINK falls below $23.85, it’s likely that a corrective wave will happen within the range of $19.26 to $22.39. This area could then transform into a possible retreat zone for potential future increases.
Chainlink Heading For Major Price Break?
It’s worth noting that some cryptocurrency experts are quite optimistic about LINK as its price surge continues. In a recent article, analyst AMCrypto predicts significant price increases for Chainlink in the month of February.
As a crypto investor, I’ve been closely watching LINK’s performance according to AMCrypto’s analysis. Despite recent gains, it seems that LINK is still in consolidation phase. The analyst predicts that we might see more weeks of range-bound movement below $30, followed by a significant price breakout in February. If this forecast holds true, Chainlink could potentially surge to as high as $54, representing a potential 125.37% increase from its current market price.
Currently, LINK is being traded at $23.95, having dropped by 2.75% over the last day. However, it’s worth noting that the trading volume for these tokens has significantly increased by 13.97% within the same timeframe, reaching a value of $957.45 million. With a market capitalization of $23.94 billion, Chainlink remains among the top 12 largest cryptocurrencies globally.
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2025-01-19 10:34