Chainlink Price Pullback: Why Analysts Aren’t Backing Down on $35 Prediction

• Despite recent volatility and a sharp correction, LINK’s strong fundamentals and whale activities signal potential for recovery.
• Analysts remain bullish, projecting LINK to rebound to $35 in January 2025 and potentially reach $75 by mid-2025.

Chainlink’s LINK token, a standout performer during December’s bullish crypto rally, has experienced a sharp correction, dropping 15% and falling below $25. Despite this, Chainlink was among the top losers after the FOMC rate cut news, according to a recent CNF update.

The token has also seen volatility driven by large-scale whale activities. Over the past three days, a large holder withdrew more than 529,000 LINK tokens worth $15.5 million from Binance, as reported by CNF.

Such large withdrawals usually decrease the market’s liquidity, leading to speculation about the whale’s intentions. Analysts perceive this movement as a positioning signal, considering Chainlink’s strong support level at $23. This level has been tested several times and still holds.

Analysts interpret this movement as a potential positioning signal, noting that Chainlink’s strong support level at $23 has been tested multiple times and remains intact.

Support Levels and Price Predictions

Analyst Ali Martinez highlighted a “buy signal” for LINK on its four-hour chart, indicating a rebound if the token could maintain the $26.8 support level. However, LINK failed to hold this level, and increased trading volume (up 49%) pushed the price further down.

Platforms like CoinCodex remain optimistic, forecasting a strong resurgence for LINK. They predict the token could hit $40 in January, with a yearly high of $75 projected by May 2025.

Currently, Chainlink (LINK) is trading at $23.26, reflecting a 6.03% decrease in the past day and a 21.32% drop over the past week.

Long-Term Confidence in LINK

Despite short-term fluctuations, LINK’s fundamentals and broader market optimism support its long-term potential. Analysts expect LINK to maintain an average price of $45 by 2025, representing a significant improvement from current levels.

With a projected 120% increase in value, Chainlink’s utility and adoption keep it positioned as a top-performing crypto asset.

While the recent pullback raises questions about LINK regaining momentum, market analysts project a recovery to $35 by January 2025. LINK has surged 63% over the past month, making its journey one to watch closely as the year concludes.