- Chainlink (LINK) recently experienced a more than 7% decline in its price over the past week.
- Market indicators suggest that the next few days could be slow-moving for the token.
- A recovery was seen as LINK managed to break away from a bullish pattern, offering hope for new highs.
Discover the recent price movements of Chainlink (LINK) and what the future holds for this crypto token.
Chainlink’s bullish pattern breakout
According to CoinMarketCap, Chainlink’s price declined by over 7% in the past week. Despite this, the token displayed signs of recovery, breaking out of a bullish wedge pattern which could signal future highs.
As of now, LINK trades at $14.27, boasting a market capitalization exceeding $8.37 billion. However, tighter profit margins have led many investors into loss territory.
Possible Trend Reversal?
Only 46% of Chainlink investors are currently seeing profits, as revealed by IntoTheBlock. Nevertheless, the breakout from its bullish wedge pattern offers hope. Prominent crypto analyst, World Of Charts, indicated that this breakout could lead to a 42% surge, potentially driving LINK’s value to $22 in upcoming weeks.
Assessing LINK’s Potential to Reach $22
With an aim to determine the likelihood of LINK attaining higher prices, we turned to on-chain data. Insights from Santiment show that LINK’s Market Value to Realized Value (MVRV) ratio has improved post a significant drop in mid-June.
Moreover, there’s been an uptick in weighted sentiment, and network growth indicates an increasing number of addresses being created for LINK transactions. However, investor sentiment remains cautious as there’s a slight rise in LINK’s supply on exchanges.
Technical Indicators and Market Sentiments
Our examination of Chainlink’s technical charts reveals mixed signals. While the token has touched the lower limit of the Bollinger Bands, indicating potential for price rise, other indicators such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) show neutral to bearish trends.
Hyblock Capital’s data adds another layer to the analysis. It indicates that LINK’s liquidation spikes near the $14.8 mark, suggesting short-term price corrections likely. Breaking past the $15 resistance level could pave the way for LINK to aim for the $22 target.
Conclusion
In summary, while Chainlink has demonstrated recovery by breaking out of a bullish pattern, mixed signals from technical indicators suggest a cautious outlook. Investors should watch critical resistance zones and market sentiments closely to gauge LINK’s next moves. The $22 target remains a plausible goal if LINK can sustain upward momentum and break through significant barriers.
