- Chainlink price has surged by over 64% in the past month to over $52, making a new record high.
- LINK entered price discovery mode, with little resistance ahead.
- However, the bull rally could incentivize colossal selling pressure in the near future.
Chainlink price made another new all-time high at $52.70, while all eyes were on Ethereum crossing past $4,000. LINK has regained massive bullish momentum in the past few weeks.
Chainlink in price discovery mode
LINK price currently sits at $52 at the time of writing, having gained over 9% in the past 24 hours, climbing over 30% in the past week. The cryptocurrency continues on in price discovery mode as it inches towards Chainlink 2.0.
The token’s daily chart shows that Chainlink price has been forming an ascending parallel channel as it makes a series of higher highs and higher lows. A channel is formed when an asset is moving between two parallel lines, with the upper trend line connecting the swing highs and the lower trend line connecting the swing lows.
If Chainlink price breaks out of the parallel channel to the upside at above $54, LINK could rally further. By drawing a parallel channel adjacent to the existing trend lines, a target of $92 can be seen if LINK continues to gain strength.
LINK/USDT daily chart
However, if Chainlink price were to consolidate, the first line of defense according is at $47.17, and if it were to lose further momentum, the next support level could be found at around $43.46.
LINK could retrace due to incoming selling pressure
Coinciding with the support levels seen in the technical analysis, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) on Chainlink has shown that the most significant level that could hold a potential correction is at around $48.89, where 10,360 addresses previously purchased over 12.4 million LINK.
LINK IOMAP
If the token’s price were to fall further, the IOMAP data indicates the next line of defense for the oracle cryptocurrency to be at around $47.58, coinciding with the aforementioned line of defense.
Further, Chainlink could be at risk of a correction as the 365-day MVRV ratio, which measures the average profit and loss of addresses holding LINK tokens show that most holders are at a profit of around 114%.
LINK 365d MVRV ratio
Based on on-chain history, Chainlink’s corrections have correlated with the MVRV ratio spiking up above 106%. The last time LINK faced a steep plunge was in mid-April where the cryptocurrency dropped around 32% when the MVRV ratio reached 106.39% and was faced with massive selling pressure.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million
Ondo price is nearing its key weekly resistance of $1.38 on Friday, and a firm close above this level hints at a rally ahead. Ondo launches its Ondo Chain, a new Layer 1 blockchain purpose-built for institutional-grade RWAs.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines
Bitcoin (BTC) hovers around $97,400 on Friday after losing nearly 5% in the last three days. Ethereum (ETH) and Ripple (XRP) fail to recover and face rejection from their key levels, hinting at further corrections.

XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds
Ripple's XRP was in the limelight on Thursday following the Chicago Board Options Exchange (Cboe) 19b-4 filing to the SEC to list and begin trading XRP exchange-traded funds (ETFs) for asset managers Canary Capital, WisdomTree, 21Shares and Bitwise.

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. Traders should watch FTX's upcoming repayments to creditors starting on February 18, which could bring in volatility for Bitcoin prices.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.