Analyst Predicts ChainLink (LINK) Rally To $13 Could Result In 45% Price Correction, Here’s Why

As a researcher with a background in cryptocurrency analysis, I have closely monitored the recent price movements of ChainLink (LINK) and have taken note of the mixed signals emerging from various analysts regarding its future price trajectory.

As a cryptocurrency market analyst, I’ve observed an uplifting trend for ChainLink (ChainLink) and its native token, LINK. Despite the broader market experiencing a notable correction recently, both ChainLink and LINK have shown resilience and rallied back with promising price recoveries.

In the last month, LINK underwent a 16% decrease in price. Yet, it has rebounded with a 5% increase to reach $13 within the past day, having touched a six-month low of $11 on Friday. However, crypto analyst Ali Martinez has raised concerns due to certain warning signs that have surfaced.

Bearish Signals For ChainLink 

As a researcher studying financial markets, I’ve noticed a concerning pattern emerging in the daily chart of LINK, as pointed out by Martinez in a recent social media post. This trend might indicate an impending significant price correction.

As a crypto investor, I’ve noticed an intriguing observation from our market analysis. The expert pointed out that there could be a potential retest of the neckline in the head-and-shoulders chart formation during this latest price surge towards $13.

Based on Martinez’s analysis, if this pattern holds true, the downtrend in ChainLink’s price is expected to persist until the peak of the right shoulder at around $20 is surpassed. In simpler terms, for this bearish trend to be contradicted, the ChainLink price must rise and exceed the $20 mark.

Analyst Predicts ChainLink (LINK) Rally To $13 Could Result In 45% Price Correction, Here’s Why

Based on current predictions, there’s a potential for ChainLink (LINK) to experience a 45% price decrease. Previously, Martinez identified this possibility if LINK dropped below the $12.70 mark as a significant support level.

In a bearish market condition, the price of the token could experience a substantial drop, possibly falling as low as $6.60. It’s important to note that this price level was previously seen in September 2023, prior to the onset of the broader market rally that started in November of the same year.

Key Levels For LINK’s Price Recovery

In his latest analysis, Crypto Ambrosio, another market expert, shares predictions aligning with a potential decrease in ChainLink’s price based on specific market indicators.

As a researcher studying the token’s price trends, I propose that if the 20-week exponential moving average (EMA), represented by the yellow line in the chart, continues to hover above the current market action, it could be taken as a significant bearish indicator. However, should the price surge and surpass this EMA level at $14.75, this bearish perspective would no longer hold true.

Furthermore, Crypto Ambrosio pointed out that the Relative Strength Index (RSI) of ChainLink was indicating a decreasing trend, which hinted at a possible new downtrend for the cryptocurrency. To offset these pessimistic indicators, it is essential for LINK to defend the $12 support level as identified by the analyst.

As a crypto investor, I’m keeping a close eye on ChainLink’s price action. If this digital asset forms a Falling Wedge pattern and manages to break above the resistance at $15, it could be an indication of a bullish reversal. Such a development might lead to further price gains, potentially reaching the yearly high of $22.89 that ChainLink touched back in March.

As a crypto investor, I’ve noticed that for LINK to initiate a potential price recovery, it needs to surmount some crucial upper resistance levels while trading around $13.28. When examining the LINK/USD daily chart, I believe the token will face its initial significant challenge at the $13.52 resistance level. This price point has served as a barrier for the past two months.

To contradict the pessimistic outlook and rise above the 20-week exponential moving average, ChainLink’s price must first break through and sustain above the $14.38 resistance mark.

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2024-07-09 01:16