The cryptocurrency market is experiencing a period of profit as Chainlink (LINK) and other altcoins follow the rally of Bitcoin. This surge in the market has led to speculation about which altcoin will prevail in the race for gains. One analyst has shared a theory about LINK’s potential to outperform other altcoins and emerge as a top gainer in the coming months. As of now, Chainlink’s native token is trading at $5.6 with a 6% profit in the last 24 hours alone.
LINK gained popularity in 2020 and 2021 due to the increasing adoption of decentralized finance (DeFi) protocols. However, like many other altcoins, it has been affected by the current bearish trend in the cryptocurrency sector. Despite this, analyst Daan Crypto believes that Chainlink has the potential to recover and trend towards new yearly highs. The price of LINK recently experienced a crash from its high of $9.50, creating an Average Range at those levels.
The $9.50 price level has acted as heavy resistance for LINK in 2023. During the downward trend, the analyst notes that bulls were able to defend the $5.50 level, which indicates a positive forecast for the cryptocurrency. Daan Crypto shared a chart on Twitter, stating, “$LINK Followed the plan. It deviated below its 400-day range and retook it. Wouldn’t expect this to outperform many of the new shiny coins but the invalidation is clear as day and the risk/reward is solid. It’s do or die here.”
The above chart shows that if LINK bulls can maintain their momentum, the token could rise as high as $10. This target aligns with the top of the channel where the token has been moving for over a year. However, it’s important to note that LINK has consistently failed to break above that resistance level and has experienced significant losses after reaching the top. In the short term, with favorable conditions in the crypto market, LINK appears poised to continue its upward trend.
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It is worth highlighting that the cryptocurrency market is known for its volatility, and predicting future price movements is speculative. While the current trend suggests a positive outlook for Chainlink, it’s crucial to perform thorough research and consider various factors before making investment decisions.
In conclusion, the crypto market is seeing gains as Chainlink and other altcoins follow Bitcoin’s rally. One analyst believes that Chainlink has the potential to outperform other altcoins and become a top gainer in the coming months. While the price of LINK has faced resistance at the $9.50 level, bulls have defended the $5.50 level, indicating a positive forecast for the token. If the momentum continues, LINK could rise to $10, but traders should also be aware of the historical struggles to break above the resistance. As with any investment, it’s important to conduct thorough research and consider the inherent volatility of the cryptocurrency market.
