Over the past month, Chainlink (LINK) has struggled under the weight of a bearish market sentiment. The asset has experienced a steady decline in value, with its price slipping below key support levels.
This downtrend has raised questions among investors about the possibility of a rebound and whether recent shifts in network activity might signal a potential recovery. As LINK’s performance falters, some analysts have stepped in to assess its trajectory and what might come next.
Analyst Outlook On Chainlink
Ali, a renowned crypto analyst, recently shared his perspective on Chainlink’s current position. Highlighting a nearly 40% price drop over the past month in Chainlink’s price, Ali noted a network contraction that may point to reduced activity.
He pointed out that LINK’s MVRV ratio—an indicator of profitability for recent traders—currently sits at a loss of 16%, a level that historically precedes a pause in selling pressure.
This drawdown is also reflected in the MVRV Ratio, which tracks trader profitability. Right now, those who bought #LINK in the past 30 days are sitting at an average loss of -16%.
This is a level that has historically marked selling exhaustion points.https://t.co/WQhXOhpqas
— Ali (@ali_charts) February 19, 2025
This metric, combined with observations of increased whale accumulation, suggests a complex picture where short-term pain could lead to long-term opportunity.
However, despite the prevailing market conditions, there are signs of renewed interest among major investors. Ali highlighted that whales have acquired over $20 million worth of LINK in just the last 24 hours, hinting at a potential shift in sentiment.
For a confirmed rebound, Ali suggested that LINK must break above the $19 mark to target $23.70. However, he also cautioned that if LINK fails to maintain its current support near $15.50, a deeper correction could follow.
Projections For LINK
Another analyst, known as Crypto Elite, offered a more optimistic outlook. According to Elite, the prolonged downtrend for Chainlink that began in 2021 has recently been broken, providing a foundation for future gains.
Elite identified ambitious price targets at $53, $100, and even $144, suggesting that the current phase might represent the early stages of a significant upward move.
ChainLINK is Gearing Up for a Massive Move!
The downtrend from 2021 has finally been broken, and we’re holding strong above it.
Targets I’m watching closely:
$53
$100
$144
The momentum is building—stay tuned for what’s next!$LINK #LINK #Link $Link pic.twitter.com/rvoTNXiSaV
— @CryptoELlTES (@CryptooELITES) February 7, 2025
Notably, the coming weeks will be critical for Chainlink as it attempts to stabilize and possibly regain lost ground. It would be worth watching closely to see whether LINK can hold key support levels, sustain whale interest, and eventually climb past pivotal resistance points
Featured image created with DALL-E, Chart from TradingView
Source link
Samuel Edyme
https://www.newsbtc.com/news/chainlink/chainlink-40-drop-in-the-past-month-analyst-assess-the-path-to-recovery/
2025-02-20 06:30:31
