Chainlink (LINK), the oracle network that powers decentralized applications (dApps), has made waves in the cryptocurrency market. After a successful rally, the digital asset is now setting its sights on higher ground, with analysts predicting an uptrend and price targets as high as $33.
At the time of writing, LINK Trading at $16.27Down 6.4% and 11.0% on the daily and weekly time frames, data from Coingecko shows.
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Support and re-accumulation levels indicate an uptrend
LINK's recent price action has analysts excited. The symbol has decisively broken through the key resistance level on the daily time frame, which is a bullish indicator indicating that buyers are in control. What is even more promising is that the price has reconsidered this level, not as resistance, but as a new support area. This “shift” from resistance to support strengthens the validity of the uptrend.
To make matters worse, LINK's price has risen by 25% in the past month. This significant gain reflects investors' growing confidence in Chainlink's potential. The general sentiment surrounding the project appears to be shifting toward optimism.
$link Ready to retest!#connection It broke through the resistance level on the daily time frame and will likely retest it as support.
This will be considered bullish if support holds.
Perfect and healthy price movement for #chain link pic.twitter.com/EaxDBpVK2T
— CryptoYapper (@CryptoYapper) June 6, 2024
Analyst sees LINK rising
Market watchdogs are noticing LINK's bullish momentum. Crypto Yapper, a popular cryptocurrency analyst, believes that a retest of the new support level is imminent. If the price remains flat at this point, it will be a strong confirmation of the ongoing uptrend. Yaber stresses the importance of this potential support in creating a positive long-term outlook for LINK.
Predict the link price
At the same time, based on Latest forecasts, LINK's price is expected to rise 30% to $21.71 by July 7, 2024. However, despite this optimistic price target, many technical indicators point to caution. The current market sentiment for Chainlink is bearish, indicating short-term pessimism among investors.
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In addition, the Fear and Greed Index, which measures market sentiment, is 77, reflecting “extreme greed.” This high level often indicates that investors are overly confident, and will likely precede a market correction. Over the past 30 days, Chainlink has shown an average of 50% green days and a volatility rate of 10.73%, indicating a balance between gains and losses but also a moderate level of price volatility.
The road ahead LINK
With all eyes on Chainlink, the next few weeks will be crucial in determining the validity of the bullish outlook. If LINK can overcome the technical hurdles and reach its price targets, it could be a sign of a market resurgence for the entire cryptocurrency industry.
Featured image from calheartmedical.com, chart from TradingView
