After suffering a week of downward price movement, Chainlink could be poised for a bullish reversal, with the $12 mark in sight over the coming days or weeks.
Let’s see why analysts think this way!
LINK was beaten down bad
While several cryptocurrencies posted nice gains in the last 24 hours, Chainlink’s performance lagged behind.
But a new analysis shows that LINK might soon climb back to $12.10. LINK now is trading at $10.70, with a market capitalization exceeding $6.5 billion.
Important factor that unfortunately only 35% of LINK investors are currently in profit.
On the other hand, we also got a positive note, the number of wallets holding LINK for over a year has been steadily increasing, suggesting growing confidence among long-term investors.
When bullrun?
The overall view now is not so positive, but there are signs that Chainlink might soon see a bullish shift. A popular crypto analyst, Crypto Tony, just posted on X that he would consider re-entering the market if LINK reclaims the $12.10 level.
Santiment’s data shows increasing buying pressure on LINK, which also could be a good sign.
This is evidenced by a decrease in its supply on exchanges and a corresponding increase in supply outside of exchanges.
This is an indicator of potential price growth. The MVRV, or Market Value to Realized Value ratio also grew big time over the past week, further signaling that a bull run could be on the horizon for Chainlink.
Which challenges to overcome?
We have to say, not all indicators are pointing to an immediate rally. Chainlink’s network growth has slowed, meaning fewer new addresses are being created, likely by fewer new users.
The Fear and Greed Index for LINK currently reflects a “greed” phase, which historically signals an incoming price decline.
For Chainlink to seriously target the $12 mark, it first needs to surpass the $11.28 level in the coming days, and there are few indicators to support this move.
The MACD, the Moving Average Convergence Divergence shows the potential for a bullish crossover, and the Money Flow Index has also shown a slight increase, both hinting at an upcoming price rise.
Have you read it yet? What to watch in crypto this week?
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