Chainlink (LINK), the oracle network powering decentralized applications (dApps), has been making waves in the crypto market. After a successful surge, the digital asset is now setting its sights on even higher ground, with analysts predicting a bullish run and price targets as high as $33.
At the time of writing, LINK was trading at $16.27, down 6.4% and 11.0% in the daily and weekly timeframes, data from Coingecko shows.
Support Levels And Re-accumulation Signal Bullish Trend
LINK’s recent price action has analysts excited. The token decisively broke through a key resistance level on the daily timeframe, a bullish indicator suggesting buyers are in control. Even more promising, the price then revisited this level, not as resistance, but as a new support zone. This “flip” from resistance to support strengthens the uptrend’s validity.
Adding fuel to the fire, LINK’s price has grown a healthy 25% in the last month. This significant gain reflects growing investor confidence in Chainlink’s potential. The overall sentiment surrounding the project seems to be shifting towards optimism.
$LINK Ready for a Retest!#LINK broke the resistance on the Daily timeframe and is probably going to retest it as support.
This would be considered bullish if the support holds.
Perfect and Healthy Price Action for #Chainlink pic.twitter.com/EaxDBpVK2T
— Crypto Yapper (@CryptoYapper) June 6, 2024
Analyst Sees LINK Soaring
Market sentinels are taking notice of LINK’s bullish momentum. Crypto Yapper, a popular analyst in the crypto space, believes a retest of the new support level is imminent. If the price holds firm at this point, it would be a strong confirmation of the ongoing uptrend. Yapper emphasizes the importance of this potential support in establishing a positive long-term outlook for LINK.
Meanwhile, based on the latest forecast, the price of LINK is projected to rise by 30%, reaching $21.71 by July 7, 2024. However, despite this optimistic price target, several technical indicators suggest caution. The current market sentiment for Chainlink is bearish, indicating short-term pessimism among investors.
Related Reading: VanEck Predicts Explosive Ethereum Growth: Could ETH Reach $2.2 Trillion?
Additionally, the Fear & Greed Index, which measures market emotions, stands at 77, reflecting “Extreme Greed.” Such a high level often signals that investors are overly confident, potentially preceding a market correction. Over the past 30 days, Chainlink has shown a 50% rate of green days and a 10.73% volatility rate, indicating a balance between gains and losses but also a moderate level of price fluctuations.
With all eyes on Chainlink, the next few weeks will be crucial in determining the validity of the bullish predictions. If LINK can overcome the technical hurdles and reach its price targets, it could be a sign of a resurgent market for the entire cryptocurrency industry.
Featured image from calheartmedical.com, chart from TradingView
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