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The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence.

Like many other cryptocurrencies, Chainlink (LINK) remains under pressure after Bitcoin hit levels below $65,000 after a wave of risk aversion swept through the cryptocurrency market.

Bitcoin exchange-traded funds (ETFs) posted their biggest outflows to date and it is also important to mention that more than $505 million worth of long positions have been liquidated over the past 24 hours. Chainlink (LINK) has weakened from $22.87 to $16.26 since March 11, 2024, and the current price stands at $18.69.

But where is the price of Chainlink (LINK) going next, and what can we expect from April 2024?

Today, Crypto Lists will discuss Chainlink (LINK) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Chainlink (LINK) connects smart contracts to real-world data sources

Chainlink (LINK) is a decentralized oracle network and cryptocurrency that aims to bridge the gap between blockchain smart contracts and real-world data, events, and APIs (Application Programming Interfaces). It is important to mention that smart contracts alone cannot access data outside of the blockchain, which is where Chainlink comes in. Chainlink provides a decentralized oracle network that connects smart contracts to real-world data sources, web APIs, and various other external resources.

Chainlink operates on an adaptable infrastructure capable of accessing data from diverse APIs, with each oracle in its network motivated to supply precise data owing to the assignment of reputation scores. Within the Chainlink ecosystem, the LINK token serves as a fundamental element, with node operators staking LINK as collateral to engage in network activities. Node operators stand to receive rewards for delivering precise data, while users incur LINK fees for accessing Chainlink’s oracle services.

Chainlink (LINK) price over the last ten days has corrected by nearly 20% to trade at $18.69 and according to analysts, this trend is likely to continue. Chainlink (LINK) came under pressure after Bitcoin hit levels below $65,000 and the reasons behind this correction are multifaceted – from traders taking profits after a period of significant gains to an overheated market correcting itself after periods of excessive euphoria.

Rating: 9.17/10
Supply: 67,009,549 / 1,000,000,000
Release date: May 20, 2019

Description: Discover Chainlink and be part of the cryptocurrency revolution.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.


Chainlink (LINK) may experience further declines

Furthermore, the use of leverage by certain traders in the futures market probably exacerbated price fluctuations, triggering a domino effect of liquidations. It is yet uncertain whether Bitcoin will continue to trade within a specific range amid ongoing volatility but what is for sure is that the prices of many cryptocurrencies will decrease in value even more if Bitcoin falls below $60,000.

Bitcoin exchange-traded funds (ETFs) posted their biggest outflows to date and according to JPMorgan analysts, the cryptocurrency market still remains in “overbought territory” which indicates that the worst is not behind us. As per data shared by BitMEX Research, Grayscale’s GBTC recorded major outflows totaling more than $1 billion on Monday and Tuesday alone.

JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note this Thursday that a slowdown in net inflows into spot bitcoin ETFs, challenging the belief in a continuous one-way flow of funds into spot ETFs. JPMorgan analysts said:

“The profit-taking on the cryptocurrency is more likely to continue, particularly against a positioning backdrop that still looks overbought despite the current correction.”

A slowdown in net inflows and decreased trading activity are certainly negative factors for LINK that will continue to influence the price of this cryptocurrency in the weeks ahead. Chainlink (LINK), like many other altcoins, can be subject to speculative trading, and speculative traders may anticipate a broader market downturn and sell off their altcoin holdings, including Chainlink, contributing to its price decrease. There are currently too many important things that could easily go wrong, and a recommendation is that investors should continue to take a defensive investment approach.

Technical analysis for Chainlink (LINK)

After hitting recent highs above $22 on March 11, 2024, Chainlink (LINK) has encountered losses of more than 15%. The price has now stabilized above $18, but a break below this level would indicate that LINK could test the support level at $16. Some analysts say that more investors could sell LINK in the weeks ahead and as long the price of LINK is below $20, the price of this crypto remains in the SELL-ZONE.

Technical analysis for Chainlink (LINK)

Important support & resistance levels for Chainlink (LINK)

Important support & resistance levels for Chainlink (LINK)

On this chart (the period from August 2023), I marked important support and resistance levels that can help traders understand where the price could move. The risk of further declines for LINK is still not over, but if the price jumps above $19, the next target could be resistance at $20. A move above the resistance level that stands at $22 would be beneficial for the bulls to remain in control of price movement. The current support level is $18, and if the price breaks this level, it would be a “SELL” signal, and the next target could be $17 or even important support at $16.

What speaks for the rise in the Chainlink (LINK) price

The upside potential for LINK probably remains limited for the upcoming weeks; still, if the price advances above $20, the next target could be resistance at $22. A move above $22 would be beneficial for the bulls to remain in control of price movement. The overall sentiment on the cryptocurrency market plays a very important role in LINK’s price trajectory, and if investors regain confidence further, an upside potential could benefit Chainlink (LINK).

What indicates further downfall for Chainlink (Link)

The decline in Bitcoin’s value had a negative impact on Chainlink (LINK) and when Bitcoin, as the leading cryptocurrency, experiences a significant decline, it usually leads to overall negative sentiment across the entire market, affecting altcoins like Chainlink. The crypto market sentiment is dented again and there has been a significant drop off in the number of whale transactions for LINK. When whales reduce their trading activity, it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.

Chainlink (LINK) is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. Chainlink (LINK) has stabilized now above $18 support, but a break again below this level would indicate that LINK could probably test the important support level that stands at $16.

What do analysts and experts say?

Chainlink (LINK) remains under pressure after Bitcoin hit levels below $65,000 and many crypto analysts say that the fact that investors have lost interest in accumulating LINK indicates that we could see lower prices for this crypto. Bitcoin exchange-traded funds (ETFs) posted their biggest outflows to date this week and it is also important to mention that more than $505 million worth of long positions have been liquidated over the past 24 hours.

A slowdown in net inflows and decreased trading activity are certainly negative factors for LINK and according to JPMorgan analysts, the cryptocurrency market still remains in “overbought territory.” Chainlink (LINK) is a highly risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors. It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in LINK.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

by Our Certified Author
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