Chainlink (LINK) To Present Buy Opportunity before 50% Rally
- LINK price looks to end its near-term upward move and appears ready to correct to $20.
- The downward move can present a ‘buy’ opportunity before the coin launches a 50% upsurge towards $33.08.
- A downward move from the $19.05 range low will annul the bullish narrative.
The latest upside price actions saw Chainlink setting up a higher high, and LINK collected liquidity beyond its previous swing peak. This move appears to have touched its climax, so market players may expect the crypto to witness a slight correction before accumulating the momentum to catalyze another run-up.
Chainlink Price Presents Optimistic Plans
Chainlink’s price experienced a 47% run-up within the last 20 days, forming a swing high of around $25.47. The upward actions allowed the alt to gather buy-stop liquidity beyond the 27 December swing high of $24.50. That may attract profit-taking by market players, catalyzing a drop towards the 70.5% retracement zone of $20.95.
Nevertheless, the correction might appear after LINK price challenges the 1 December swing high near $26.94. Either way, Chainlink will see a brief retracement, translating to a purchasing opportunity for sidelined enthusiasts.
The upward move from this minor drop will allow LINK to overcome $25.48. After that, the coin will fill the FVG (Fair Value Gap), extending in the $30.47 – $33.08 range. This run-up will translate to a 50% surge from the support floor at $20.95.
Whale transactions worth more than $1,000,000,000 seem to support LINK’s brief retracement. A surge in these transactions often shows that market players are taking profits, and the asset price is likely to follow with retracements. On 3 January, Chainlink’s whale transfers surged to 34, showing an upcoming correction for the altcoin.
Meanwhile, the GIOM model indicates that the $30 price zone is the only significant obstacle in LINK’s upside path. Here, nearly 88,760 addresses that bought 38.79 million coins are ‘out of money.’
Though things appear to support bullish moves in Chainlink, surged selling momentum that results in a 4hr candle close beneath the $19.05 range low will form a lower low, annulling the bullish case. With such a development, LINK might retrace towards the support level at $17.26.
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