Chainlink Price Prediction: Will LINK Regain $20 Mark?
A channel pattern in the daily chart is preventing a major correction in the Chainlink price. If there is a break above the overhead trendline, it will intensify buying momentum. The intraday trading volume for LINK is currently at $449 million, indicating a 33% loss.
The Chainlink coin price experienced an aggressive recovery in late October, breaking above the $7 mark. It surged nearly 148% to reach a new yearly high at $17.67. However, the current market uncertainty has weakened the LINK recovery momentum, causing it to trade within a channel pattern.
Recent insights from Lookonchain have revealed notable acquisition trends among major holders within the Chainlink network. This suggests a strong confidence in the potential for this asset to continue its upward trend.
If there is an upside breakout from the overhead resistance, it could lead to a post-breakout rally that surges the Chainlink price by another 20%, reaching a potential target of $22.
Is LINK Price at Risk of Another Correction?
Although the current market outlook for Chainlink price is bullish, a breakdown below the lower trendline of the channel pattern could change the market dynamics. This could intensify selling pressure and trigger a correction phase, potentially reaching levels of $12.8 and $11.3, which coincide with 38.2% and 50% Fibonacci retracement levels respectively.
- Experimental Moving Average: In case of a prolonged correction, the rising 100-and-200-EMA can provide support for buyers to regain bullish momentum.
- Moving Average Convergence Divergence: The recent bounce back of the MACD(blue) and signal(orange) lines from the midline support indicates that the recovery trend is intact.
Hot Take: The Future of Chainlink Price
The Chainlink price is currently trading within a channel pattern, which has helped sustain higher levels with dynamic resistance and support trendlines. The possibility of an upside breakout presents a potential target of $22. However, a breakdown below the lower trendline could lead to a correction phase. Overall, the market outlook for Chainlink remains uncertain, but recent acquisition trends among major holders suggest confidence in its upward potential.
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