Following the overall trend in the digital currency market, Chainlink (LINK) saw a notable price increase over the past week, climbing by 20.41% as reported by CoinMarketCap. Interestingly, market analysts from More Crypto Online have highlighted a key factor that is crucial for sustaining this upward movement.
Chainlink Could Potentially Experience Correction
In a recent post by More Crypto Online, a cautious technical analysis of the LINK market was shared. Utilizing the Elliott Wave Theory, the analysts have identified a critical level for Chainlink to maintain its bullish trend, pegged at $23.85. The Elliott Wave Theory is a tool used by traders to forecast market trends based on market cycles and crowd psychology.
According to this theory, there are two scenarios for price movement: the optimistic white scenario sees continued upward momentum if Chainlink stays above $23.85, a crucial support level. On the other hand, the yellow scenario represents a corrective phase, typically a temporary pullback before the bullish trend resumes.
Any drop below $23.85 could signal a reversal in the market, potentially stalling Chainlink’s upward momentum. However, there is a possibility for a corrective phase denoted by the yellow wave, where a temporary retracement sets in before the bullish trend continues.
More Crypto Online analysts anticipate that if LINK falls below $23.85, the corrective wave could occur within the range of $19.26 to $22.39, establishing this zone as a potential area for further price gains.
Is Chainlink Poised for a Significant Price Movement?
In a different perspective, some crypto analysts are optimistic about LINK’s future amid its recent price surge. In a post by AMCrypto, the market pundit predicts substantial price gains for Chainlink in February.
AMCrypto highlights that despite recent gains, LINK is currently consolidating and is expected to trade within a range below $30 for some weeks before a major breakout in February. The forecast suggests that Chainlink could reach as high as $54 during this projected surge, signifying a potential 125.37% increase from its current market price.
As of now, LINK is trading at $23.95 with a 2.75% decline in the past day. However, the trading volume of $957.45 million reflects a gain of 13.97% in the same period. With a market cap of $23.94 billion, Chainlink remains the 12th largest cryptocurrency globally.
