According to the general crypto market, Chainlink (LINK) recorded a significant price gain in the past week rising by 20.41% according to data from CoinMarketCap. Interestingly, market analysts based on X More Crypto Online have implemented market conditions that are critical to sustain this price increase.
Chainlink is facing a potential correction
In a X recent postMore Crypto Online share a careful technical analysis of the LINK market. Using the Elliott Wave Theory, these analysts have concluded that Chainlink needs to stay above $23.85 to preserve the current bullish trend. For context, the Elliott Wave Theory is a trading tool that traders use to predict market trends based on crowd psychology and market cycles.
In price forecasting, the Elliott Wave Theory can often present a white position ie the optimistic positive case and the yellow wave ie another case that is likely to correct before an uptrend continues. For the LINK market, the white position assumes that an upward trend will continue as long as the asset remains above $23.85 which represents an area of critical support.
Any price drop below $23.85 could cause a shift in market dynamics, which could halt Chainlink's bullish charge. However, there is also the possibility of a corrective yellow wave. In this context, this yellow wave continues as an initial uptrend and represents only a temporary pullback before the trend starts back on its bullish path.
According to the analysts at More Crypto Online, if LINK falls below $23.85, the corrective wave is expected to occur between $19.26 and $22.39, turning this sector into a potential rebound zone for more benefits.
Chainlink going for a big price cut?
In other news, some crypto analysts are very bullish on LINK amid the asset's price rally. In the x postMarket pundit AMCrypto has backed Chainlink to experience significant price gains in February.
According to AMCrypto, LINK is still in consolidation despite recent gains. The analyst predicts that the cryptocurrency will experience more weeks of rmovement with age below $30before a major price break was implemented in February. Based on AMCrypto's forecast, it is expected that Chainlink be exchanged for 54 US dollars In this projected price increase indicates a potential gain of 125.37% on the current market price of the coin.
At the time of writing, LINK is trading at $23.95 after a decline of 2.75% in the past day. On the other hand, the trading volume of the tokens with a value of $957.45 million shows a gain of 13.97% in the past day. With a market cap of $23.94 billion, Chainlink still ranks as the 12th largest cryptocurrency in the world.
