Chainlink Price Set to Break 3-Month Downtrend: How High Can LINK Go?

As a seasoned crypto investor who has weathered numerous market cycles, I find myself intrigued by the current performance of Chainlink (LINK). With over 25% gains within the past week, it has outperformed many of its peers in the top 20 cryptocurrencies. However, the recent 6.1% dip today, aligned with the general market downturn, serves as a reminder that even the most bullish coins can experience temporary setbacks.


As a researcher observing the cryptocurrency market, I’ve noticed an upward trajectory in Chainlink (LINK) over the past week, with its price surging more than 25%. This growth outpaces that of the top 20 cryptocurrencies, a fact that catches my attention. However, looking at the short-term perspective, I foresee a potential 7% retracement for LINK. This retracement could find support at a crucial level. If a bounce follows, it might indicate a continuation of the bullish trend. Conversely, if a break lower occurs at this point, it could challenge the current bullish thesis.

Why is Chainlink Price Rising?

On August 21, the price of Chainlink started climbing significantly when Sony revealed their plans to launch a blockchain named Soneium. As partnership rumors swirled following this announcement, the value of Chainlink continued to rise.

Aside from Optimism’s OP Stack, Sony chose Chainlink’s CCIP for its development. 

The cutting-edge blockchain platform developed by Sony Group and StartaleHQ, known as Soneium, has selected Chainlink as its primary launch partner for their initial rollout.

Through adopting Chainlink’s platform, Soneium taps into the essential infrastructure that supports growth and acceptance within the blockchain marketplace.

— Chainlink (@chainlink) August 23, 2024

As a researcher, I’m excited to share that, following the announcement by Johann Eid, Chief Business Officer of Chainlink, Soneium is set to integrate Chainlink’s Core Connection Interface Protocol (CCIP) as its primary cross-chain infrastructure. This integration will grant developers access to Chainlink Data Feeds, a feature that will be made available via Chainlink Scale. Additionally, Soneium will leverage Chainlink’s Functions and Verifiable Random Function (VRF) to establish a robust, developer-friendly ecosystem.

At present, the price of LINK is moving back, yet the enthusiasm surrounding the news continues to feel quite noticeable within the LINK enthusiasts’ circle.

Futures Traders Gunning For That 7% in Shorts

As a researcher, I’ve noticed an intriguing trend in Chainlink (LINK) futures trading: While the underlying fundamentals are promising, data from Coinglass indicates that traders have predominantly opened large short positions on LINK. This could be due to investors taking advantage of the opportunity to lock in profits after a significant 25% weekly surge, leading to price retracement.

Based on a daily analysis of Chainlink’s price chart, the token LINK appears to be trading beneath its 50-day exponential moving average (EMA). The next possible support for LINK could be around the $10.87 mark.

Chainlink Price Set to Break 3-Month Downtrend: How High Can LINK Go?

This represents a decrease of 7.6% from the current value, which could be the target for Futures traders, as data from Coinglass Liquidation Map suggests. The significant discrepancy between the total Short and Long Liquidation Leverage indicates that negative sentiment is prevalent in the market, though it’s predominantly short-term.

Chainlink Price Set to Break 3-Month Downtrend: How High Can LINK Go?

A substantial resistance barrier exists between $12.11 and $12.51, potentially hindering any upward price movement. But if the bulls are victorious, these traders might be forced to sell off their positions.

The Road Ahead for Chainlink Price

According to the analysis, if the price at LINK recovers from its current support at around $10.87, it could potentially increase by approximately 27%, reaching about $13.87. However, this potential rise might meet resistance at the 200-day Exponential Moving Average (EMA), which has been hindering the price growth for the past 72 days.

Should the price surpass this significant barrier, Chainlink could potentially see further growth of approximately 37%, reaching around $19.28. After that, it might aim for $22.91 to exceed its annual peak.

In summary, the current trend for Chainlink’s price appears optimistic, with any potential temporary decreases simply serving as necessary adjustments within a larger positive movement.

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2024-08-27 13:20