Recently, Chainlink (LINK) has faced a 5.63% decline over the past week amid market volatility. However, the altcoin has maintained a healthy 20.88% increase over the past month, indicating that many new investors are still in profit. Analyst Ali Martinez has suggested that if Chainlink can pull back to the $16 region, it may set the stage for a significant price rally.
Key Points
- Chainlink has dropped 5.63% in a week but is up 20.88% monthly.
- Analysts predict a parabolic surge if the price retraces to $16.
- The $16 area is seen as a critical support level.
- Fibonacci extension levels indicate a potential peak at $98.15.
- Maintaining support in the $16-$17 range is crucial for bulls.
In-Depth Analysis
According to Ali Martinez, Chainlink is forming a long-term symmetrical triangle pattern on its weekly chart, suggesting that a short-term correction could pave the way for a significant breakout. Currently trading around $22, Martinez believes that a retracement to $16 could provide the "most bullish setup" for LINK holders, offering a launchpad for months of bullish momentum.From a technical analysis standpoint, the significant Fibonacci retracement level at 0.5 suggests that this price point could see renewed buying pressure. If Chainlink can secure support at this level, the chart indicates potential for a series of higher highs and lows that could propel its price beyond $31.88, $52.30, and eventually into triple digits near $100. Such a movement would signify a nearly 350% increase from current levels and over 500% from the suggested $16 retest zone.