Chainlink Inches Closer To $18 Despite Bearish Pressure – Analyst
One very promising crypto asset that is performing very well today in the crypto market is Chainlink (LINK). Many experts have noticed LINK’s price path as current market circumstances offer a combination of volatility and stability. Under a background of restrained market movement, Chainlink’s technical patterns suggest a bright future.
Technical Analysis Shows Promise
According to new technical examinations, Chainlink is currently trading at $14.10, but a rise may be around the corner. It has been going down since it climbed recently. However, a well-known crypto expert, Ali Martinez, has seen a pattern form on the 4-hour chart that may just turn things around in LINK’s favor.
#Chainlink appears to form a head-and-shoulders pattern on the 4-hour chart. A sustained close above $14.7 could send $LINK to $18.3! pic.twitter.com/v566HWIIrR
— Ali (@ali_charts) July 21, 2024
Usually, this pattern – called the head and shoulders – indicates a negative trend reversal. Martinez points out, nevertheless, a major discrepancy in this situation.
There are three peaks in the head-and-shoulders configuration; the centre peakᅳthe headᅳis tallest. The two adjancent peaksᅳthe shouldersᅳhave almost the same elevation.
Usually, a decline below the necklineᅳwhich right now is at $14.63ᅳwould indicate a bearish change. Martinez advises, however, that Chainlink may ward off these negative consequences by keeping a price over $14.70, thereby paving the ground for a significant price rise to $18.3.
Chainlink (LINK) Price Projection
Based on the most recent analysis by CoinCheckup, Chainlink is selling around 90% below its projected value for next month. This notable undervaluation implies that LINK is presently going through a period of reduced price in relation to its expected future worth.
Technical signs and market circumstances point to a positive future with projections of a 35% rise over the next three months. This expected increase suggests a possible trend of stabilisation and recovery.
Longer-term forecasts seem much more positive. Forecasts of a 140% rise over the following six months reflect significant positive momentum and a potential recovery trend. The one-year projection of the platform supports this encouraging view even more by implying a 76% increase at the end of the year.
Such forecasts highlight Chainlink’s prospects for significant appreciation, which makes it an interesting choice for those looking for long-term profits.
Market Conditions And Levels Of Resistance
More general market dynamics have shaped Chainlink’s recent pricing swings. Over the weekend, the market for cryptocurrencies showed modest volatility marked by a neutral candlestick development in Bitcoin.
The technical signs are looking positive. The fact that the asset is now trading higher above both the 20-day and the 50-day moving averages is a highly encouraging indicator. As an additional point of interest, the average directional index (ADX) is decreasing and is currently at 25%, which indicates that the downward trend is beginning to slow down. This indicates that the price of LINK may increase in the near future.
Featured image from Pixabay, chart from TradingView
