In line with the overall cryptocurrency market, Chainlink (LINK) recorded a significant price rise last week as it rose by 20.41% according to data from CoinMarketCap. Interestingly, the X-based market analysts at More Crypto Online have put forth the crucial market condition to sustain this upward price trend.
Chainlink is facing a possible correction
In a X’s last postMore Crypto Online shared a cautious technical analysis of the LINK market. Using Elliott Wave theory, these analysts determined that Chainlink must remain above $23.85 to maintain its current uptrend. For context, Elliott Wave Theory is a trading tool used by traders to predict market strains based on crowd psychology and market cycles.
In price forecasting, Elliott Wave Theory can often present a white scenario, i.e. an optimistic bullish case, and a yellow wave, i.e. an alternative case with a most likely correction before the uptrend continues. For the LINK market, the white scenario assumes that the upward movement will continue provided that the asset remains above $23.85 which represents a critical support area.
Any drop in price below $23.85 could cause a shift in market dynamics, which could halt Chainlink’s bullish charges. However, there is also a possibility of a corrective yellow wave. In this context, this yellow wave follows an initial upward movement and represents only a temporary pullback before the trend resumes its upward path.
According to analysts at More Crypto Online, if LINK drops below $23.85, a corrective wave is expected to occur between $19.26 and $22.39, turning this area into a potential correction zone for further gains.
Is Chainlink headed for a major price break?
In other news, some cryptocurrency analysts are very bullish on LINK amid the asset’s rising prices. in Share Xmarket expert AMCrypto backed Chainlink for massive price gains in February.
According to AMCrypto, LINK is currently still being consolidated despite recent gains. The analyst expects the cryptocurrency to see further weeks of movement within the sub-$30 range, before implementing a major price breakout in February. Based on AMCrypto forecasts, Chainlink is expected to trade as high as $54 in this expected price rise indicating a potential gain of 125.37% from the current market price of the coin.
At the time of writing, LINK is trading at $23.95 after a 2.75% decline in the past day. On the other hand, token trading volume of $957.45 million reflects a 13.97% gain in the past day. With a market capitalization of $23.94 billion, Chainlink continues to be the 12th largest cryptocurrency in the world.
