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In line with the general crypto market, Chainlink ($LINK) registered a significant price gain in the last week rising by 20.41% according to data from CoinMarketCap. Interestingly, X-based market analysts More Crypto Online have rolled out a market condition critical to sustaining this price uptrend.
Chainlink Faces Potential Correction
In a recent X post, More Crypto Online shared a cautious technical analysis of the $LINK market. Using the Elliott Wave Theory, these analysts have determined Chainlink must stay above $23.85 to preserve its current bullish trend. For context, the Elliott Wave Theory is a trading tool used by traders to predict market breeds based on crowd psychology and market cycles.
In price prediction, the 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 upward movement will continue provided the asset stays over $23.85 which represents a critical support zone.
Any price fall below $23.85 could cause a shift in market dynamics, potentially halting Chainlink’s bullish charge. However, there is also potential for a corrective yellow wave. In this context, this yellow wave follows as an initial upward movement and represents only a temporary pullback before the trend resumes its bullish trajectory.
According to the analysts at More Crypto Online, if $LINK dips below $23.85, the corrective wave is expected to occur between $19.26 and $22.39, converting this region to a potential retracement zone for further gains.
Chainlink Heading For Major Price Break?
In other news, certain crypto analysts are highly bullish on $LINK amidst the asset’s price rally. In an X post, market pundit AMCrypto has backed Chainlink to experience massive price gains in February.
According to AMCrypto, $LINK is currently still in consolidation despite recent gains. The analyst predicts the cryptocurrency will experience more weeks of range-bound movement below $30, before executing a major price breakout in February. Based on AMCrypto’s forecast, Chainlink is expected to trade as high as $54 in this projected price surge indicating a potential 125.37% gain on the coin’s current market price.
At the time of writing, $LINK trades at $23.95 following a 2.75% decline in the past day. On the other hand, the tokens’ trading volume valued at $957.45 million reflects a 13.97% gain in the past day. With a market cap of $23.94 billion, Chainlink continues to rank as the 12th largest cryptocurrency in the world.