As the broader cryptocurrency market gears up for a bullish recovery, the decentralized finance (DeFi) segment is poised for a potential bull run. Among the top performers in this space, Chainlink (LINK) stands out, preparing for a breakout that could elevate its price significantly. This leads to an important question: How high will LINK jump in 2024?
Chainlink has been a focal point for analysts and investors alike, particularly as it approaches critical resistance levels. The recent price action shows LINK struggling to surpass the 200-day Exponential Moving Average (EMA), even as it demonstrates a bullish trend reversal from a low of $9.280. This recovery is highlighted by a formation known as a falling wedge, typically signaling a potential upward breakout.
In the short term, the LINK price action has experienced three consecutive bullish candles, indicating a recovery. However, a recent one-day correction of 7.99% created a bearish engulfing candle, testing the 50-day EMA. The pivotal point for LINK lies at the 200-day EMA; a bullish breakout here could propel the price to around $21.69. Conversely, a reversal could lead to a retest of the psychological support level at $10.
Looking ahead to 2024, Chainlink's market cap currently sits at $6.474 billion, which poses challenges for sustaining significant recovery runs. Notably, LINK is still approximately 80% below its all-time high of $54.40. However, if prices manage to break above the $20 mark, the momentum could unleash significant upward potential.
The anticipated altcoin season of 2024, coupled with a robust DeFi ecosystem, may push LINK towards a new all-time high, potentially reaching $60. Analysts suggest that if LINK maintains its bullish trajectory and capitalizes on positive market sentiment, it could even challenge the $100 mark by 2025.
Chainlink is at a critical juncture as the DeFi segment prepares for a potential bull run. With strategic price points to monitor and a promising outlook, LINK could be a key player in the upcoming cryptocurrency resurgence. Investors and analysts alike will be keeping a close eye on how LINK navigates these pivotal levels in the coming months. As always, it’s essential to stay informed and consider market dynamics when making investment decisions in this volatile landscape.
November 2024, Cryptoniteuae