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Chainlink Price Prediction: March could be moment that LINK bulls trigger 28% meltdown as they exit

  • Chainlink price is closing out February with a marginal gain of just 6%.
  • LINK sees support nearby and has bulls desperate for a bounce.
  • Should support prove to be weak, the year-to-date return could become negative in March. 

Chainlink (LINK) price is in distress as vital support is needed to add fresh money into its rally. On the other hand, even the smallest slip below the crucial support at $7 could be the omen that the year-to-date (YTD) value for LINK is set to turn negative for 2023. That would mean that the start of 2023 was just a dead-cat bounce.

Chainlink bulls could see their efforts erased

Chainlink price is under threat of proving that the bear trend of 2022 is still in motion and the crypto winter is far from over. Before starting to talk about that possible doom scenario, there is still one element that is currently standing between that catalytic meltdown or a mere correction. That element is $5 and could be tested in March if $7 support breaks soon.

LINK is thus in a precarious situation as a 27% decline is at risk of happening and putting the YTD value back at zero. Expect the morale among bulls to be broken, and $5 could receive further pressure. Should $5 break lower later in March or April, it will be hard to tell where this sell-off halts with $4 as the best guess.

LINK/USD weekly chart

LINK/USD weekly chart

Luckily for bulls, that $7 handle bears both the 55-day and the 200-day Simple Moving Averages (SMAs) as supportive measures. Certainly, the 200-day SMA is important and could be pivotal to underpin price action. Once the recovery rally for 2023 is confirmed, expect bulls to target $12 by this summer and bring on a 65% gain for the first half of this year.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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