Analyst Eric Krown Crypto has pointed out that Chainlink (LINK) is on the verge of an important move, marking an event it hasn’t seen in over two years. Krown said that the historical role of Chainlink is a leading indicator for the broader cryptocurrency market, particularly influencing Bitcoin’s trajectory. Krown’s observations primarily focus on Chainlink’s weekly chart, hinting at possible developments in the cryptocurrency market over the next few weeks.
Krown suggested potential price targets, with $20 as a key watch level. However, he underlined the critical importance of Chainlink maintaining its position above the January lows, approximately at $12.50.
If Chainlink manages to close above the crucial 50% retracement level, it could signify the resumption of an upward trend. This potential breakout is assessed within a low volatility environment, indicating the completion of a consolidation phase initiated in early November.
He mentioned that the bulls are currently in control, which could potentially trigger a substantial rally. From a percentage standpoint, moving from the 50% level to, let’s say, a $20 target represents more than a 21.5% increase, a significant development. This could serve as the next achievable target in the coming weeks. It’s essential to note that these projections may extend further, possibly reaching around 24%, as seen in a two-spot extension scenario.
However, it’s crucial to remain cautious and consider various factors before jumping to conclusions. If Chainlink shows strength in this manner, it may also indicate a stronger case for Bitcoin potentially having established a low, though this scenario is still considered unlikely.
At the time of writing, Chainlink is heading towards the $20 mark. The coin is up by over 6 percent in the last 24 hours and is trading at $18.79.
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
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