A very promising crypto asset that is performing very well in the crypto market today is Chainlink (LINK). Many experts have noted LINK’s price trajectory as the current market circumstances offer a combination of volatility and stability. Against the backdrop of subdued market movement, Chainlink’s technical patterns suggest a bright future.
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Technical analysis shows promise
According to new technical scans, Chainlink is currently trading at $14.10, but a move higher could be in the offing. It has been trending lower since its recent surge. However, a well-known crypto expert, Ali Martinez, has spotted a pattern forming on the 4-hour chart that could just turn things around in LINK’s favor.
#Chain link appears to form a head and shoulders pattern on the 4-hour chart. A sustained close above $14.7 could send $LINK for $18.3! pic.twitter.com/v566HWIIrR
-Ali (@ali_charts) July 21, 2024
Typically, this pattern – called a head and shoulders pattern – indicates a negative trend reversal. Martinez points out, however, a major discrepancy in this situation.
There are three peaks in the head and shoulders configuration; the central peak—the head—is the highest. The two adjacent peaks—the shoulders—are nearly the same elevation.
Typically, a decline below the neckline, which is now at $14.63, would indicate a bearish shift. Martinez advises, however, that Chainlink can avoid such negative consequences by holding a price above $14.70, thus paving the way for a significant price increase to $18.3.
Chainlink (LINK) Price Projection
Based on CoinCheckup’s latest analysis, Chainlink is selling at around 90% below its projected value for the next month. This notable undervaluation implies that LINK is currently experiencing a period of reduced price relative to its expected future value.
Technical signals and market circumstances point to a positive future with projections of a 35% increase in the next three months. This expected increase suggests a possible stabilization and recovery trend.
Longer-term forecasts look much more positive. Forecasts of a 140% increase over the next six months reflect significant positive momentum and a potential recovery trend. The platform’s one-year projection further supports this encouraging view by implying a 76% increase by the end of the year.
![Chainlink Nears $18 Despite Bearish Pressure – Analyst 2 a 936f2a](https://thegurumedia.com/wp-content/uploads/2024/07/a_936f2a.png)
Such predictions highlight Chainlink’s prospects for significant appreciation, making it an interesting choice for those seeking long-term profits.
Market conditions and resistance levels
Broader market dynamics have shaped Chainlink’s recent price swings. Over the weekend, the cryptocurrency market experienced modest volatility, marked by neutral candlestick development in Bitcoin.
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Technical signs look positive. The fact that the asset is now trading above the 20-day and 50-day moving averages is a highly encouraging indicator. As an additional point of interest, the average directional index (ADX) is decreasing and currently stands at 25%, which indicates that the downtrend is starting to slow down. This indicates that the LINK price may increase in the near future.
Featured image from Pixabay, chart from TradingView