Chainlink price remained in a tight range on Monday, continuing a consolidation phase that started in late January. LINK token was trading at $8.5420, down substantially from last year’s high of $30.80. It may continue to fall in the near term despite ongoing bullish catalysts, after forming a risky chart pattern.
Chainlink Price Prediction: Technical Analysis
The weekly chart shows that the LINK token peaked at $30.96 in December 2024 but has since fallen to the current $8.5510. It has dropped below the oversold level of the Murrey Math Lines tool at $9.375.
The coin is slowly forming a bearish flag pattern, a common bearish continuation sign in technical analysis. It is now in the flag section, suggesting a strong bearish breakdown soon.
Most importantly, the coin has formed a giant head-and-shoulders pattern, with its neckline at $10.15, its lowest level in 2024 and in April last year. A H&S pattern is a common bearish reversal sign in technical analysis.
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LINK token has remained below the Ultimate Support level of the Murrey Math Lines tool at $12.50. It has moved below the 50-week Exponential Moving Average.
The Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have continued falling. The RSI has dropped to the oversold level, while the two lines of the Percentage Price Oscillator (PPO) have continued falling.
Therefore, the most likely Chainlink crypto price prediction is bearish, with the next key target at $4.96, about 42% below the current level.
Chainlink Has Some Solid Fundamentals
LINK token has come under pressure over the past few months, and this trend may continue this week despite strong fundamentals.
First, data shows that the two spot Chainlink ETFs have added assets this year, even as Bitcoin and Ethereum outflows continue.
LINK ETFs have added $2.87 million this month, bringing the cumulative total net inflows to $90.6 million. The Grayscale LINK ETF (GLNK) has $68 million in assets, while the Bitwise Chainlink ETF (CLNK) has over $12 million.
Second, Chainlink continues to accumulate LINK tokens for its strategic LINK reserves. It has bought thousands of tokens, bringing the total holdings to 2.42 million, bringing the total value to $20.6 million.
Additionally, the network has a major partnership with leading companies that handle trillions of dollars in annual volume. It has partnerships with DTCC, Clearstream, Euroclear, and BCG to boost global capital flows.
It also revealed a partnership with ANZ, Visa, ChinaAMC, and Fidelity. These firms completed the transfer of regulated assets under the Hong Kong Monetary Authority’s e-HKD.
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