The crypto world has entered a turbulent phase where most tokens struggle, and Chainlink (LINK) is no exception. Over the week, Chainlink price has declined 30%, reflecting the entire market’s struggle, where Bitcoin has dropped below $100k. Though this is happening under the impact of various macroeconomic events, the concern is more about its continuity. Analysts believe LINK price needs to overcome a specific level to recover and prevent a further crash. What’s that? Let’s discuss.
Chainlink Price To Crash Unless It Crosses $23.78
Popular crypto analyst Ali claims that $23.78 is the critical point for the Chainlink token. If the tokens fail to cross this level, the LINK price remains at risk of a crash. More importantly, overcoming this key resistance could spark a new bull rally.
According to Ali’s post, around 78.95% of the LINK supply (789.49 Million tokens) is in the money zone, where they bought their tokens at an average price of $15.28, and the remaining 14.18% are out of the money, where the average buying price is near $23.78. With that, $23.78 is the most critical resistance for this token, as the investors who bought between $20.96 and $26.25 are facing losses.
Once the token price approaches this key resistance, it could incentivize these holders to sell. This could initiate intense selling pressure, but once the resistance is overcome, it could boost market sentiments and create room for a rally. As a result, this breakout could allow us to reach $25, $30, and higher targets per Chainlink price predictions.
Whale Activity Sparks Market Concerns
Amid the macroeconomic events impacting the global crypto market, the growing activity of the Chainlink whales is also a factor to consider. An earlier CoinGape report mentioned that Whales have offloaded 4 million tokens in 48 hours alone, and there’s more reporting of such incidents.
Such a massive sell-off is the representation of declining confidence. Interestingly, this connects to the 30% loss LINK faced over the week. It currently trades at $18.11 and is facing high consolidation. However, the 12% surge in its training volume of $588.13M indicates that investor interest is rising.
The surge suggests that investors are buying the dip at this low, and the continuity of buyers’ activity could fuel its recovery. More importantly, crossing Ali’s predicted key resistance of $23.78 could propel it to a bullish rally.
Can Chainlink Price Ever Again Hit $50?
LINK token hit its prime in the 2021 bull run when the price surged to an ATH of $52.88. Since then, this token has never moved closer to that, creating concerns over its potential to attain similar peaks. However, despite the lack of bullish momentum, LINK has seen growing crypto adoption and increasing demand. If the right bullish momentum builds with high investor demand and a Bitcoin bull run, Chainlink price might hit $50.
Many crypto analysts back this statement, considering historical patterns and price movements. One analyst believes that the token is bouncing from the upper border of the symmetrical triangle, and a breakout above the current key resistance could propel it to $50.
Another analyst presented a similar finding, claiming that the token to find support is around $18.50, which will also act as the entry point for buyers. From there, upward movement is anticipated, with the targets being $28.50, $36.50, and $50.00.
However, all these are speculation for now, and it could vary significantly due to market conditions and further movement of the LINK price.
Key Things To Remember
Chainlink token is at a critical juncture after facing a constant downtrend for days, as its price has declined 30% over the week. It currently trades at $18.11, with the key resistance at $23.78, which is the crucial factor for this token’s performance. It can either divert it to a bullish rally if this resistance is overcome or further crash on the failure to overcome this resistance. With the formation of the uptrend and continuity, LINK price could attain $50 in the near future.
The post Chainlink Price Needs to Overcome This Level to Prevent Another Crash appeared first on CoinGape.
