As an experienced analyst, I find the recent Chainlink (LINK) price action quite intriguing. This week has been a rollercoaster ride for investors as early-week sentiment recovery fueled by Ethereum’s development in spot ETF was countered by Bitcoin’s correction. The BTC‘s four consecutive daily drops, which reached $67,000, limited the recovery for several altcoins, including LINK.
As a crypto investor, I’ve noticed an exciting week in the crypto market with investors’ sentiment swinging like a roller coaster. The early-week recovery, fueled by Ethereum‘s development in spot ETF, was soon overshadowed by Bitcoin‘s correction. The BTC‘s four-day slide brought it down to $67,000, which put a damper on the recovery of several altcoins. However, I’ve been impressed with Chainlink (LINK) coin’s resilience during this market correction. Today, LINK jumped by 4%, forming a reversal candle pattern— a morning star at the $16 support level.
Chainlink Price Analysis: On-Chain Data Shows Highest Profit-Taking Ratio Since 2022
Beginning in mid-May, Chainlink’s price bounced back from its monthly support at $12.8. This resurgence of energy propelled the asset upwards by a significant 34.2%, resulting in a new trading price of $17.23.
As an analyst, I’ve noticed that on May 16th, the LINK price rally successfully breached a downward-sloping trendline, marking the end of a two-month correction phase. At present, the LINK price is maintaining its position above the $16 level, which had previously functioned as support. Despite Bitcoin initiating a new correction trend, LINK’s stability above this critical threshold is noteworthy.
At the opening of the morning session, the price began forming a bullish reversal pattern at $16. This price level functioned as a strong support for buyers, who rallied to reach for a higher objective.
As a crypto investor following the insights from Santiment, a reputable analytics firm, I’ve noticed an intriguing trend with Chainlink (LINK). The on-chain data suggests that for every single transaction where someone realizes a loss with their LINK tokens, there are eleven transactions where investors are enjoying profits. This indicates a strong buying sentiment among the community and could potentially be a positive sign for future price movements.
#Chainlink has outpaced the crypto market, breaking the $17.50 barrier for the first time in over a month. Notably, for every dollar’s worth of losing #LINK transactions, there are currently eleven profitable ones – a ratio not seen since December 8, 2022.
— Santiment (@santimentfeed) May 24, 2024
The current 11:1 profit-taking ratio is the most pronounced since December 8, 2022, signifying a robustly bullish attitude among LINK investors. This data implies that numerous market players are seizing profits at elevated price points, underscoring a strong sense of faith in the market’s upswing.
Thus a potential reversal from $16 may bolster LINK price to target $18.67, followed by $20.7.
Technical Indicator:
- Exponential Moving Average: A potential bullish crossover between the 20-and-50-day EMA could accelerate the buying pressure in the LINK price
Average Directional Index: The uptick in ADX (26%) slope with today’s price jump hints the buyers hold sufficient momentum to prolong the current recovery trend.
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2024-05-24 19:16