Chainlink (LINK), a leading digital asset, boasts a market capitalization of $6.86 billion and a fully diluted valuation of $10.95 billion.
Following a recent recovery from a dip that briefly pushed its price below $10, LINK has encountered and resisted this crucial level on three separate occasions, hinting at a potential upward trend.
Currently priced around $11, LINK has seen a modest 3% increase in the last 24 hours, as reported by CoinMarketCap. While short-term price movements for LINK present some challenges, its historical performance and long-term outlook remain robust.
Evolution of LINK
Reflecting on LINK’s journey, it experienced a remarkable surge from $0.6 to $55 after breaking a two-year barrier. Presently, LINK is entrenched in a four-year phase of accumulation, a period that could pave the way for another significant surge akin to its past achievements.
Should Chainlink break free from this consolidation phase and reclaim its all-time high, investors could witness a substantial 420% gain from the current price level.
This potential breakthrough would be underpinned by recent technological advancements like Ronin’s integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
Despite encouraging signs, the timing of the next major LINK rally remains uncertain. Analysis indicates that substantial price movements for LINK might not materialize until early next year, possibly between January and March.
While short-term traders might spot bullish trends, those eyeing significant price shifts should exercise patience.
Presently, LINK’s weekly cycles exhibit strength following recent daily lows. A breakout by week’s end could extend its upward trend into the following week, benefitting short-term traders.
Still, secondary cycles hint at a brief period of strength. Traders are advised to remain vigilant as caution is warranted.
LINK’s Current Market Heatmap
An essential factor to consider is LINK’s liquidation levels, shedding light on potential price fluctuations.
Market movements often gravitate towards high liquidity zones. Bybit’s liquidation heatmap based on the last three months indicates $14 as a crucial level for LINK.
At this juncture, leveraged orders totaling $1.5 million are poised for liquidation, marking it as a pivotal threshold for LINK’s upcoming rally.
A successful push to this level could spark the much-anticipated breakthrough from LINK’s prolonged accumulation phase.
Present price actions of Chainlink hint at the potential for significant future gains, especially upon breaking free from its extended consolidation phase.
The exact timing of this anticipated rally remains uncertain, urging investors to remain watchful. Chainlink’s ongoing display of strength and potential for another substantial surge deem close monitoring necessary.