Comparing the LINK price trend to that of BTC reveals a significant negative correlation. Whenever LINK has expressed optimism near the $8 threshold, Bitcoin has experienced a decline. Notably, a prominent crypto influencer has observed a recurring pattern: whenever LINK's price exceeds $8, Bitcoin tends to undergo a sell-off. This pattern might indicate a deliberate strategy by Bitcoin whales, pursuing entry into Chainlink with the expectation of future profits.
The fact that the token's price has recently teetered on the threshold of $8 adds intrigue to the situation. In addition, there are indications of bullish momentum in the altcoin market, as increased purchasing activity by whale investors demonstrates.
In contrast, Chainlink whales have demonstrated confidence in the altcoin over the past two weeks by amassing roughly $53 million worth of tokens. This trend is further supported by on-chain data, which indicates that investors acquired over 7.5 million LINK tokens in less than two weeks.
This momentum is bolstered by the fact that Chainlink's address activity has reached its highest level in two months, while the token's supply on centralized exchanges (CEXs) has decreased significantly.
Let’s see the Chainlink (LINK) price prediction from Chainlink Forecast:
Chainlink (LINK) Prepares For A Bull Run
In the LINK/USDT weekly chart, the price showed a corrective momentum from the second quarter of 2022, which shows that bulls still have opportunities to join the possible bullish rally. The price tested an all-time high of 52.93 in May 2021 and crashed lower with a 71% loss. However, the long consolidation at the bottom is a sign of a bullish accumulation, which could result in an impulsive trend.
The above image shows how the weekly RSI moved to the bullish zone while the recent price formed a bullish breakout from the dynamic 20 EMA. Moreover, the price approaches the critical trend line resistance from where a bullish breakout is pending. In that case, an additional bullish rejection from the dynamic 20 EMA would be a buying opportunity in this pair.
In that case, the primary target of the bullish entry would be the current all-time high of 18.10 resistance level. Moreover, a stable price action above the 100-week SMA would extend the bullish target towards the 28.00 level.
On the other hand, a deeper correction may be found if the price moves below the dynamic 20 EMA, which could initiate a deeper discount towards the 5.36 level.
LINK/USDT Ichimoku Cloud Analysis
According to the Ichimoku cloud in the daily chart, the broader market context shifts from bearish to bullish as the future cloud changes its direction. Senkou Span A is above Senkou Span B and aiming higher, which is the primary sign of the possible bullish pressure in the price. However, the current price is trading at the premium zone from the 8.47 high to the 5.58 low, which needs sufficient downside correction before forming a bullish continuation.
In the daily chart, the Traders Dynamic Index (TDI) is at the overbought level while the current price is above dynamic Tenkan Sen and Kijun Sen. Investors should closely monitor how the price trades above the Kumo cloud.
The primary aim is to wait for a bearish correction and a rejection from sellers at the dynamic support level. A bullish opportunity would be open in that case, targeting the 10.00 level.
On the other hand, a deeper discount is possible, where a bearish daily candle below the 5.36 level could alter the current market outlook.
LINK/USDT Intraday Price Action Analysis
In the H4 timeframe, the overall market trend is bullish as the current price has over-extended from the visible range high volume level. Although an ascending channel formation is visible, a downside correction is pending as a mean reversion.
In the secondary window, the MACD Histogram shows neutral behavior, while the current MACD signal line is in bullish territory.
Based on this outlook, downside pressure toward the high volume level needs a solid breakdown from the channel support. On the other hand, a bullish extension with an H4 close above the 8.50 level could increase the price towards the 10.00 level.
Is Chainlink (LINK) A Buy?
According to the LINK Price Prediction, the overall price direction is corrective for a longer period. In that case, a bullish breakout from the weekly resistance could offer a long-term HODLing opportunity in this pair.