Chainlink [LINK] has witnessed notable advancements through collaborations with different industry participants. These partnerships have elevated its adoption within the digital currency sphere.
As of the present moment, on the daily chart, LINK’s price appears to be following a downward trajectory within a channel. While this pattern has persisted since June, there are recent indications of a potential support level. This support will be confirmed if the price breaches the short-term peak at $13.
Despite LINK’s recent bearish trend, which pushed the value below $13, it managed to discover support around $9.42, where a potential double-bottom formation is emerging.
The MACD has also transitioned to a bullish stance, offering partial confirmation of this pattern. The real test lies in LINK’s ability to surpass the $13 mark.
If the price successfully surpasses the upper trendline and maintains its position, it could signify a 35% surge, provided that the overall altcoin market cap extends its support. Nevertheless, a drop below the existing support range might lead to further declines.
If the current support level holds, LINK could witness a bullish phase in Q4 of 2024. This could provide an optimal entry opportunity for traders and investors anticipating a price recovery.
Assessment of Chainlink’s Long-Term UDPI Risk Model
The long-term Upside-Downside Potential Index (UDPI) risk model for LINK is currently at historically low levels.
This model, which examines risk-reward scenarios over time, indicates that LINK offers more potential for profits when the UDPI is low.
Despite the prevalent pessimistic market sentiment towards LINK, with subdued price action and bullish activities, the UDPI signifies that LINK is at its lowest risk level – a pivotal factor to monitor as Q4 nears.
In the past, such levels have denoted deep value positions for LINK. A potential trend reversal could be on the horizon should market conditions align accordingly.
Upward Movement in NVT Ratio
Furthermore, Chainlink’s on-chain operations have demonstrated an uptrend, with its network value to transaction (NVT) ratio exhibiting growth.
The consistent increase in NVT since the beginning of this year highlights a surge in activity on the Chainlink blockchain.
This development serves as a positive sign for LINK, reinforcing the belief that the price has established a firm support level and might observe an upward trajectory soon.
Examining Chainlink’s Social Dominance
Lastly, there has been a significant surge in LINK’s social interactions. Among the leading ten cryptocurrency projects, Chainlink boasts a social dominance rate of 1.65%, determined by social posts and engagements across various platforms.
This mounting social engagement further strengthens the optimistic sentiment surrounding LINK, particularly since heightened social visibility often aligns with increased interest and potential price shifts.
To sum up, the recent collaborations, on-chain activities, and social predominance of Chainlink all indicate the likelihood of a price surge if market conditions improve.
If LINK manages to uphold its current support level and the double-bottom formation materializes, the upcoming months could witness a notable price uptick.