Why Chainlink Price Could Rise 32% to $22

  • LINK price fell more than 11% in the last seven days.
  • A successful breakout could allow LINK to reach $22.

Link of the chain [LINK], Like most other cryptocurrencies, it failed to generate profits for investors last week as its charts remained in the red. But the scenario could change in this new week, as the token was about to break a bullish pattern.

The possible breakup of Chainlink

CoinMarketCap’s data He revealed that the price of LINK fell by more than 11% in the last seven days. In fact, in the last 24 hours alone, the token’s value fell by more than 3%.

At the time of writing, LINK was trading at $14.27 with a market capitalization of over $8 billion.

Separately, IntoTheBlock data revealed that only 45% of LINK investors made profits, which can be attributed to some extent to the latest weekly double-digit price drop.

AMBCrypto’s analysis of Santiment data revealed that the bearish price action had a negative impact on the token’s social metrics. For example, Chainlink’s weighted sentiment remained in the negative zone.

This meant that bearish sentiment around the token dominated the market. Furthermore, its social volume also decreased, reflecting a drop in LINK’s popularity.

However, investors should not get discouraged as there are chances of the trend changing.

World Of Charts, a popular cryptocurrency analyst, recently published a cheep highlighting a bullish falling wedge pattern on the LINK price chart.

According to the tweet, LINK is about to break out of the pattern, which could result in a 32% price increase. If that happens, then investors could witness LINK touching $22 soon.

Is a bullish rally possible?

AMBCrypto then analyzed the token’s on-chain data to see if it supported the possibility of a bullish breakout.

We found that investors were not willing to sell or buy Link. Both LINK’s on-exchange bid and off-exchange bid charts remained tightly knit, reflecting lower activity.

The whales also did not make any big moves as the supply contained in the main direction chart remained stable.

Additionally, Chainlink’s network growth slowed a bit. This meant that fewer addresses were created to transfer the token last week.

We then took a look at LINK’s daily chart to better understand if a bullish rally was possible.

According to our analysis, LINK’s Relative Strength Index (RSI) recorded a decline. The Chaikin Money Flow (CMF) also followed a similar downward trend, hinting at a further price drop in the coming days.

Realistic or not, here it is LINK market capitalization in BTC terms

If this bearish price trend continues, then LINK could soon plummet to its $12.9 support level.

However, the Money Flow Index (MFI) was slightly bullish as it moved north.

Next: Ethereum stablecoin volume drops: Will it affect ETH prices?

This is an automatic translation of our English version.

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