TLDR
Chainlink (LINK) has experienced a sharp 15% price correction after a strong December rally, currently trading at $24.08
Despite the recent downturn, analysts maintain bullish predictions for a $35 price target in January 2025, supported by Trump’s election victory and pro-crypto sentiment
The token has shown impressive growth with a 63% increase over 30 days and 69% over the past year
Technical analyst Ali Martinez identified a “buy signal” on LINK’s four-hour chart, though the asset failed to maintain its $26.8 support level
CoinCodex predicts LINK could reach $75 by May 2025, settling around $45 for the year
The cryptocurrency market has witnessed an unexpected shift as Chainlink (LINK) undergoes a notable price correction, dropping 15% from its recent highs. The digital asset, which had been riding high during December’s crypto rally, is now trading at $24.08, prompting renewed analysis of its short-term trajectory.
Trading data from CoinMarketCap reveals LINK has experienced a 14.97% decline over the past seven days, with an 11% drop occurring within a 24-hour period. This movement represents a sharp reversal from the asset’s previously strong performance, which saw gains of 63% over the past month.
The correction comes amid broader market movements following Donald Trump’s victory in the 2024 US presidential election. While Bitcoin has reached unprecedented six-figure values, LINK’s recent performance has diverged from the general market trend, catching many traders off guard.
Market watchers have noted a substantial increase in LINK’s trading volume, which surged 49% on Thursday. This spike in activity suggests heightened investor interest despite the price decline, potentially indicating a period of price discovery and market repositioning.
Technical indicators have begun to show promising signs for LINK’s recovery. Cryptocurrency analyst Ali Martinez recently highlighted a buy signal appearing on the asset’s four-hour chart. While the token failed to maintain its critical $26.8 support level, this technical indicator suggests potential upward momentum.
The TD Sequential indicator has flashed a buy signal on the #Chainlink $LINK 4-hour chart. If the key $26.8 support holds, #LINK could aim for a rebound toward $28.5 or even $30.2. pic.twitter.com/4HaaTSVygf
— Ali (@ali_charts) December 18, 2024
Historical data shows LINK’s yearly performance remains impressive, with a 69% increase over the past twelve months. This longer-term trend has maintained investor confidence despite the current price correction, as it demonstrates the asset’s capacity for sustained growth.
Price prediction platform CoinCodex has maintained its bullish stance on LINK’s prospects for early 2025. Their analysis suggests the asset could reach $40 in January, citing the anticipated impact of the incoming administration’s pro-cryptocurrency policies.
The platform’s data indicates even stronger potential for growth as 2025 progresses. May 2025 stands out as a particularly optimistic target, with predictions pointing to a possible $75 price level. This would represent a substantial increase from current valuations.
Chainlink Price on CoinGecko
Trading patterns show LINK’s recent correction has not fundamentally altered its market structure. The asset continues to maintain price levels well above its early 2024 valuations, suggesting the current downturn may be temporary rather than indicative of a longer-term trend reversal.
Market data indicates LINK’s correlation with other major cryptocurrencies has remained relatively stable during this correction. This suggests the asset’s price movement is more likely tied to token-specific factors rather than broader market sentiment.
The asset’s performance relative to other alternative cryptocurrencies remains noteworthy. LINK has outperformed several peers in the same market cap range, including VeChain (VET), Stellar (XLM), and Tron (TRX), when measuring year-to-date returns.
Technical analysis of LINK’s trading patterns reveals several key support levels below the current price. These levels could provide stabilization points if the correction continues, potentially preventing further substantial declines.
Volume analysis shows increased activity at key price levels, suggesting active price discovery. This heightened trading activity often precedes major price movements, though the direction remains uncertain.
CoinCodex’s analysis suggests LINK could stabilize around $45 throughout 2025, representing a 120% increase from current levels. This prediction accounts for various market factors, including regulatory developments and broader cryptocurrency adoption trends.
The most recent data shows LINK trading volumes have begun to normalize after Thursday’s spike, with price action showing early signs of stabilization around the $24 level.
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