Chainlink Price Prediction: Will LINK Fall Below $17 Support Level?
The native token of the Chainlink oracle network, LINK, has been relatively stable this week compared to the broader market recovery. However, as Bitcoin signals a new correction phase, there is speculation about whether LINK’s price will fall below the $17 support level.
Flag Pattern Signals Temporary Pullback
In late January, Chainlink price experienced a significant rebound, reaching a peak of $20.85. However, resistance at this level caused a price correction to $19.1. The development of a flag pattern on the 4-hour chart suggests a temporary pause by buyers to consolidate strength.
A notable on-chain activity reveals that 83 new wallets, potentially linked to a single entity, have withdrawn 11,097,687 LINK tokens from Binance in the past two weeks. This movement of Chainlink tokens could signal strategic accumulation and hint at a potential price rally.
Technical Indicator
- Bollinger Band: A squeezed range of Bollinger Band indicators reflects increasing volatility in the market and the need for the flag breakout to trigger a directional rally.
- Average Directional Index: An aggressive drop in the ADX slope reflects that buyers have sufficient momentum to drive the next leap.
For those optimistic about Chainlink’s future, a successful break above the pattern’s upper trendline could serve as a pivotal point for recovery. In that case, LINK’s price could potentially increase by 15% from its current trading value of $19.89.
Hot Take: Potential Recovery Ahead for Chainlink
If you’re keeping an eye on Chainlink’s price, there are some positive indicators to consider. The development of a flag pattern suggests a temporary pause in buying activity, potentially leading to a continuation of the upward trend. Additionally, the withdrawal of a significant number of LINK tokens from Binance could indicate strategic accumulation by a single entity, hinting at a potential price rally.
However, it’s important to keep an eye on technical indicators such as the Bollinger Band and Average Directional Index. These indicators can provide insights into market volatility and momentum, helping you make informed decisions about your Chainlink investments.
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