Will Chainlink’s Price Hit $22 Soon?

The performance of Chainlink (LINK) in the past week has been disappointing for investors, with a significant decline in its price. However, signs are pointing towards a potential bullish breakout in the near future.

Last week, LINK experienced a price decline of over 11%, with a further 3% drop in the last 24 hours, bringing its current value to $14.27 with a market capitalization exceeding $8 billion.

Data from IntoTheBlock indicates that only 45% of LINK investors are currently in profit, which can be attributed to the recent double-digit price decline. Notably, bearish sentiment surrounding the token has dominated the market, as evidenced by Chainlink’s negative weighted sentiment and declining social volume.

Despite this bearish sentiment, there are indications of a potential bullish breakout. A prominent cryptocurrency analyst, World Of Charts, highlighted a bullish falling wedge pattern in LINK’s price chart, suggesting a possible 32% price rise and a potential reach of $22.

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An analysis of LINK’s on-chain data reveals limited activity, with both supply-on-exchanges and supply-outside-exchanges remaining closely aligned, signifying reduced trading activity. Furthermore, the lack of significant movements from large holders and a decrease in Chainlink’s network growth indicate a subdued market.

A technical analysis of LINK’s daily chart shows mixed signals. While the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicate a bearish trend with a potential price drop, the Money Flow Index (MFI) exhibits a slightly bullish movement.

In summary, while the market sentiment around Chainlink currently leans bearish, the existence of a potentially bullish pattern and limited on-chain activity suggests the possibility of a trend reversal soon.

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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael's expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.