In line with the overall crypto market, Chainlink (LINK) recorded significant price gains over the past week, rising 20.41% according to data from CoinMarketCap. Interestingly, X-based market analysts More Crypto Online have rolled out a market condition that is crucial to sustaining this price uptrend.
Chainlink faces possible correction
In one recent X-postMore Crypto Online shared a cautious technical analysis of the LINK market. Using the Elliott Wave Theory, these analysts determined that Chainlink needs to stay above $23.85 to maintain the current bullish trend. For context, Elliott Wave Theory is a trading tool used by traders to predict market races based on crowd psychology and market cycles.
In price predictions, Elliott Wave Theory can often present a white scenario, i.e. the optimistic bullish case, and the yellow wave, i.e. an alternative case, most likely a correction before an uptrend continues. For the LINK market, the white scenario assumes that the upward move will continue provided the asset remains above $23.85, which represents a critical support zone.
Any price drop below $23.85 could cause a shift in market dynamics, potentially halting Chainlink’s bullish trajectory. However, there is also potential for a corrective yellow wave. In this context, this yellow wave follows as an initial upward move and represents only a temporary pullback before the trend resumes its bullish trajectory.
According to the analysts at More Crypto Online, if LINK falls below $23.85, the correction wave is expected to occur between $19.26 and $22.39, turning this region into a potential retracement zone for further gains.
Chainlink heading for a major price drop?
In other news, certain crypto analysts are very bullish on LINK amid the asset’s price surge. In an X posthas backed market expert AMCrypto Chainlink to experience massive price increases in February.
According to AMCrypto, LINK is currently still in consolidation despite recent gains. The analyst predicts that the cryptocurrency will see a move below $30 for weeks before a major price breakout occurs in February. Based on AMCrypto’s forecast, Chainlink is expected to trade as high as $54 in this expected price increase, indicating a potential gain of 125.37% over the coin’s current market price.
At the time of writing, LINK is trading at $23.95, having dropped 2.75% in the past day. On the other hand, the trading volume of the tokens, valued at $957.45 million, reflects a gain of 13.97% in the past day. With a market capitalization of $23.94 billion, Chainlink remains the twelfth largest cryptocurrency in the world.
