The Oracle’s Descent: A Rebound on the Horizon?

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“The Oracle’s Descent: A Rebound on the Horizon?”

The Oracle’s Descent: A Rebound on the Horizon?

Alas, dear reader, the once-mighty Chainlink has fallen, its price plummeting a staggering 40% over the past month, leaving investors to ponder the existential question: will it rise again? 🤔

Yesterday’s trading session was a veritable rollercoaster, with Chainlink’s price careening from the lofty heights of $19.20 to the depths of $17.28, only to rebound slightly in today’s session. At the time of writing, Chainlink (LINK) was up a paltry 0.06% in the last 24 hours, a meager $18.05. 📉

According to the esteemed crypto analyst, Ali, the recent price correction is a harbinger of a network contraction, signaling a slowdown in activity for Chainlink. The Chainlink LINK network has been contracting since Nov. 30, a dire portent indeed. 📊

#Chainlink $LINK has dropped nearly 40% over the past month, leaving investors wondering: Is a rebound on the horizon?

Let’s dive in 👇🧵

— Ali (@ali_charts) February 19, 2025

The price drop is also reflected in the MVRV ratio, a metric that measures trader profitability. Alas, those who bought LINK in the last 30 days are sitting at an average loss of -16%, a level that has historically marked selling exhaustion points. 😩

The larger crypto market, a veritable sea of uncertainty, saw mixed price action in the early Wednesday trading session, but the majority of crypto assets were in the green at press time. Investors are eagerly anticipating the FOMC meeting minutes from January, set to be issued on Wednesday at 2:00 p.m. ET, which will provide fresh insights into monetary policy and how long the Fed will continue to keep interest rates steady. 🕰️

Is Rebound on Horizon?

In an earlier tweet, Ali indicated that Chainlink (LINK) has historically rebounded when the MVRV drops below -16%, with past gains of 312%, 64%, 61%, 25%, and 52%. MVRV is currently at -16.3%, which could indicate another comeback on the horizon. 🚀

Meanwhile, whales are buying Chainlink’s recent price dip, a sign of confidence returning. Ali observed that over the last 24 hours, whales have bought over 1.10 million Chainlink worth more than $20 million, a veritable vote of confidence. 🐳

However, for Chainlink to confirm a rebound, it must break past $19 to target $23.70. Amid the current market uncertainty, the $15.50 level remains key to watch, as losing this support could invalidate the bullish outlook and trigger a steeper correction. 📊

That said, the most critical support level for Chainlink is at $15.50, while key resistance levels to watch are $19 and $23.70. A breakout or breakdown from these levels could set the trend for Chainlink’s next price move. 🤔

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2025-02-19 18:10