Key Insights:
- With the recent price drop, LINK is near a key support level at $12.75, a historically strong reversal zone. However, if this level fails, a massive crash could follow.
- Despite the bearish outlook, on-chain metrics are flashing bullish signals. This hinted at a potential price recovery in the coming days.
- Chainlink’s bullish prediction will hold only until it maintains itself above the $12.50 level.
After a recent notable decline, Chainlink price prediction has become a crucial topic for determining the asset’s next move. LINK has dropped significantly, losing 17% in under a week.
The price has now hit a key support level at $12.75. This level is crucial and could determine its next move. It appears to be a make-or-break situation for LINK.
Chainlink Price Action and Technical Analysis
LINK’s daily chart shows the asset has retested this crucial level several times since November 2024. Each retest has been followed by periods of upside momentum.
However, the sentiment is bearish this time. Additionally, the market continues to face massive selling pressure and a price decline, indicating a potential breakout.
Recent price action suggested that LINK may continue its current momentum and close a daily candle below the $12.75 level. If this happens, it could experience a 25% price drop, potentially reaching $9.80.
This Chainlink price prediction reflects the bearish outlook. On the other hand, LINK could gain upside momentum by holding its current level and repeating past trends.
Experts suggest that staying above $12.50 could trigger a price reversal. This reversal may lead to a 32% surge, with the next resistance level at $18.
The daily chart revealed that LINK traded below the 200-day Exponential Moving Average (EMA). It indicated a bearish trend and weak price action.
Current Price Momentum
At press time, LINK was trading around $13.60 and showing recovery signs. As per Chainlink price prediction, the asset is attempting to regain upward momentum.Â
However, it has still faced a 0.50% price drop in the last 24 hours. This highlighted a mixed performance despite the rebound efforts.
However, during the same period, traders and investors showed strong interest. It resulted in a 50% surge in trading volume compared to the previous day.
This surge in participation likely occurred due to the ongoing price recovery and LINK’s history of bullish reversals.
LINK Holders Potential Accumulation
The on-chain analytics firm Coinglass reported that investors and long-term holders are potentially accumulating LINK tokens.
Data from spot inflow/outflow reveals a $1.80 Million outflow of LINK tokens from exchanges in the last 24 hours. This significant movement hints at potential accumulation. Investors seem to be positioning themselves for future market shifts.
With a notable outflow and the price showing recovery at a historically robust level, Chainlink price prediction leans bullish. A potential 30% surge could unfold in the coming days.
This bullish prediction will hold only if LINK maintains itself above the $12.50 level. Otherwise, the price may drop by 25%.