Chainlink (LINK) has been doing pretty well in the world of cryptocurrencies, standing out from other digital currencies that have been a bit shaky. In the last week, LINK gained around 7%, but there’s a chance it might be heading for a correction. Let’s take a closer look to understand what might happen next for Chainlink.
How LINK Has Been Performing
While many other cryptocurrencies have been going up and down a lot, Chainlink managed to gain 7% in the last 24 hours. However, if we look at its price movement since November 2023, it seems to be stuck in a certain price range.
The Possibility of Prices Going Down a Bit
There’s this level, $16.86, that Chainlink keeps trying to break, but it hasn’t succeeded so far. On the other side, there’s a support level at $13.08 that LINK hasn’t fallen below. This pattern of going back and forth suggests that there might be a chance of prices dropping a bit – something that happens quite often in the cryptocurrency world.
If Chainlink gets rejected again at $16.86, its price could go down. And if the support levels at $14.87 and $14.43 don’t hold, the price might drop even more, possibly reaching $13.08, which is about 20% less than what it is now.
In a more negative scenario, the price could even go down to $10.772. However, if this happens, it could be an opportunity for people who want to buy Chainlink at a lower price.
What the Numbers and Indicators Tell Us
Some numbers and indicators suggest that Chainlink might be in for a bit of a rough patch. For example, the Market Value to Realized Value (MVRV) ratio, which tells us if traders are making or losing money, is in a risky zone. In the past, whenever it went above this level, Chainlink’s price dropped.
Right now, people who bought Chainlink earlier are making about 10 times their initial investment. This means they might want to sell and take their profits. Also, more LINK tokens are now on exchanges, which could mean more people want to sell. So, things are a bit uncertain.
What Could Happen Next
The future for Chainlink depends on what happens between the people who want prices to go up (bulls) and those who want prices to go down (bears). If the ones who want prices to go up can push past $16.86, Chainlink might reach $17.67. But if this doesn’t happen, the idea that prices might go down could become true.
In summary, while Chainlink has been doing well, there’s a chance it might face a bit of a downturn. People who are interested in Chainlink should keep a close eye on what happens next to make smart decisions.