In line with the general crypto market, Chainlink (LINK) registered a significant price gain in the last week rising by 20.41% according to data from CoinMarketCap. Interestingly, X-based market analysts More Crypto Online have rolled out a market condition critical to sustaining this price uptrend.
Chainlink Faces Potential Correction
In a recent X post, More Crypto Online shared a cautious technical analysis of the LINK market. Using the Elliott Wave Theory, these analysts have determined Chainlink must stay above $23.85 to preserve its current bullish trend. For context, the Elliott Wave Theory is a trading tool used by traders to predict market breeds based on crowd psychology and market cycles.
In price prediction, the Elliott Wave Theory can often present a white scenario i.e. the optimistic bullish case and the yellow wave i.e. an alternative case most likely a correction before an uptrend continues. For the LINK market, the white scenario assumes upward movement will continue provided the asset stays over $23.85 which represents a critical support zone.
Any price fall below $23.85 could cause a shift in market dynamics, potentially halting Chainlink’s bullish charge. However, there is also potential for a corrective yellow wave. In this context, this yellow wave follows as an initial upward movement and represents only a temporary pullback before the trend resumes its bullish trajectory.
According to the analysts at More Crypto Online, if LINK dips below $23.85, the corrective wave is expected to occur between $19.26 and $22.39, converting this region to a potential retracement zone for further gains.
Chainlink Heading For Major Price Break?
In other news, certain crypto analysts are highly bullish on LINK amidst the asset’s price rally. In an X post, market pundit AMCrypto has backed Chainlink to experience massive price gains in February.
According to AMCrypto, LINK is currently still in consolidation despite recent gains. The analyst predicts the cryptocurrency will experience more weeks of range-bound movement below $30, before executing a major price breakout in February. Based on AMCrypto’s forecast, Chainlink is expected to trade as high as $54 in this projected price surge indicating a potential 125.37% gain on the coin’s current market price.
At the time of writing, LINK trades at $23.95 following a 2.75% decline in the past day. On the other hand, the tokens’ trading volume valued at $957.45 million reflects a 13.97% gain in the past day. With a market cap of $23.94 billion, Chainlink continues to rank as the 12th largest cryptocurrency in the world.
Source: NewsBTC