Consistent with the overall cryptocurrency market, Chainlink (LINK) experienced a notable price increase over the past week, climbing by 20.41% according to information from CoinMarketCap. Notably, X-based market experts More Crypto Online have unveiled a market situation crucial for maintaining this price uptrend.
Chainlink May Be Prone to Correction
In a recent post on X, More Crypto Online provided a meticulous technical assessment of the LINK market. Employing the Elliott Wave Theory, these experts concluded that Chainlink needs to remain above $23.85 to uphold its prevailing bullish trend. To clarify, the Elliott Wave Theory serves as a trading instrument utilized by traders to forecast market movements based on collective psychology and market cycles.
In terms of price forecasting, the Elliott Wave Theory can frequently illustrate a white scenario, representing the optimistic bullish outlook, and the yellow wave, which signifies an alternative situation likely indicating a correction before an uptrend resumes. For the LINK market, the white scenario suggests continued upward movement as long as the asset remains above $23.85, a vital support level.
Any price decrease below $23.85 might trigger a change in market dynamics, possibly interrupting Chainlink’s bullish momentum. Nonetheless, there is also a chance for a corrective yellow wave. In this context, the yellow wave emerges following an initial upward surge and signifies merely a short-lived pullback before the trend continues its bullish path.
As per the analysts at More Crypto Online, should LINK fall below $23.85, the corrective wave is anticipated to occur within the range of $19.26 to $22.39, transforming this area into a possible retracement zone for additional gains.
Is Chainlink on the Brink of a Significant Price Break?
In other developments, various cryptocurrency analysts are notably optimistic about LINK amid the asset’s price surge. In an X post, market commentator AMCrypto has predicted that Chainlink will witness substantial price increases in February.
According to AMCrypto, LINK is still in a phase of consolidation despite its recent gains. The analyst foresees that the cryptocurrency will undergo several weeks of range-bound fluctuations below $30, prior to a significant price breakout in February. Based on AMCrypto’s projection, Chainlink is anticipated to reach as high as $54 in this anticipated price surge, reflecting a potential increase of 125.37% from the coin’s current market price.
As of the time of writing, LINK is trading at $23.95 following a 2.75% dip over the past day. Conversely, the token’s trading volume, valued at $957.45 million, indicates a 13.97% rise within the last day. With a market capitalization of $23.94 billion, Chainlink maintains its position as the 12th largest cryptocurrency globally.
