Chainlink has been one of the better performing altcoins as of late, surging to a new all-time high of $32 in the last 24 hours.
After previously showing a tendency to endure massive price corrections following a prolonged uptrend, analysts are now wondering what’s next for LINK. Some indicators seem to be suggesting that Chainlink is likely to maintain a similar price level in the coming weeks.
There have been two instances where Chainlink’s price has undergone a substantial reversal right after a bull run. The first happened in September 2020 after LINK reached $20 for the first time, only to then fall by 47%.
Later in November of that year, Chainlink lost an additional 31%. Since then, however, the digital asset has been able to sustain its bullish efforts.
If the past is any indication, LINK will likely see a price correction in the coming weeks. That ultimately may not happen if new data from Glassnode is to be believed.
The on-chain provider revealed there has been a steady increase in Chainlink’s active addresses. The data also showed new addresses being formed despite the price continuing to skyrocket. This reduces the chance of a sell-off for LINK and helps it sustain a similar price level.
If the price correction does occur, one can expect a dip of around 14 percent. This would take LINK’s price to the $25-$26 range thanks to the support that coin has built up over the past few weeks.
Chainlink’s Bull Run Continues
On the contrary, if Chainlink’s bull run continues, analysts believe it can breach the $40 mark. The number of whales with 1,000,000 to 10,000,000 LINK coins ($34,000,000 to $340,000,000) has increased significantly in the past week, indicating that large holders believe the price can see further gains.
Using the Fibonacci Retracement tool, the next potential price target on the daily chart seems to be around $43 which is the 127.2% fib level. Chainlink might even reach $52.89 in the long-term, at the 161.8% level.
However, on the daily chart, the TD Sequential indicator has presented a green ‘8’ candlestick which is usually followed by a sell signal. This could send LINK towards $30 again or perhaps even lower at $25.