LINK Falls 40% in a Month, Analysts Target $19 Break for Confirmed Rebound

Chainlink (LINK) has faced a challenging period over the past month, with its market value declining and slipping below critical support levels. This downturn has prompted investors to consider the likelihood of a rebound and examine recent changes in network activity for signs of potential recovery. As LINK navigates these turbulent waters, analysts are evaluating its future performance.

Renowned crypto analyst Ali has recently weighed in on Chainlink's current challenges , observing a nearly 40% drop in its price over the past month.

He notes that the network's contraction might indicate decreased activity, with the MVRV (Market Value to Realized Value) ratio reflecting a 16% loss, a level historically associated with diminished selling pressure.

Ali's insights highlight that the MVRV ratio, which measures trader profitability, suggests that recent buyers of Chainlink are experiencing an average 16% loss. This figure often signals a potential pause in selling activity. Additionally, increased accumulation by large investors, or "whales," complicates the present narrative, suggesting that short-term difficulties could evolve into long-term opportunities. Notably, Ali pointed out that over $20 million worth of LINK was acquired by whales in just the past 24 hours, indicating a possible shift in market sentiment.

For LINK to confirm a rebound, Ali suggests it must exceed $19 to target the $23.70 level. If LINK fails to hold its current support near $15.50, however, a further decline is possible.

Another analyst, known as Crypto Elite, provides a more hopeful assessment. Elite suggests that the extended downtrend in Chainlink from 2021 has recently been broken, laying the groundwork for future advancements. The analyst identifies optimistic price targets at $53, $100, and even $144, proposing that this phase could be the initial stage of a major upward movement.

In the coming weeks, Chainlink's ability to stabilize and potentially regain previous heights will be crucial. Investors will closely monitor its capacity to maintain key support levels, sustain interest among significant investors, and surpass strategic resistance points as it seeks to recover and advance.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.