Chainlink (LINK) has joined the broader altcoin recovery, surging by over 4% in the past 24 hours. This positive movement comes after a period of decline, with LINK forming a falling wedge pattern and reaching a low of $9.2.
While the recent gains are encouraging, it’s important to note that LINK remains significantly below its all-time high of $50.88. The question now is whether this recovery is a temporary bounce or the start of a more sustained uptrend.
Crypto Analyst Forecasts 4x Gains
Prominent crypto analyst Cryptojack has expressed optimism about LINK’s potential, suggesting that it could be poised for a 4x gain. However, he has outlined two key conditions that must be met:
- Breaking Above the Falling Wedge: LINK must break out of the falling wedge pattern to establish a strong uptrend.
- Maintaining Support Above $6: The altcoin must remain above the $6 support level to avoid further declines.
If LINK can successfully achieve these conditions, it could be on track to hit $22. Historical data suggests that breaking out of falling wedges has been a positive sign for LINK, leading to significant price increases in the past.
Positive On-Chain Indicators
In addition to the technical analysis, on-chain indicators also suggest a potential recovery for LINK. The Market Value to Realized Value (MVRV) ratio has turned positive, indicating a shift from negative to positive market sentiment. This suggests that increased demand and optimism are driving the price increase.
Furthermore, the open interest per exchange for LINK has been rising, indicating that more investors are betting on further price increases. This is a bullish signal as it suggests that investors are opening new positions and paying a premium to hold their positions.
Chainlink’s recent recovery and positive on-chain indicators suggest that it may be positioned for further gains. However, it’s important to remain cautious and monitor the market closely. If LINK can successfully break out of the falling wedge and maintain support above $6, it could be on track to achieve significant price appreciation.
Also Read: Litecoin (LTC) Climbs 3% Amid Bitcoin’s $57K Drop – Is LTC The New Safe Haven?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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