Chainlink (LINK) is one of the cryptocurrencies that has suffered the most from the weakness of the altcoins. The LINK price has collapsed after 397 days in the range between $9.62 and $5.32, which is an extremely bearish signal.
But the good news is that, after falling below support at $5.32 on 10 June, the bulls have managed to regain the level for the time being. Nevertheless, the Chainlink price is not out of the woods yet. A do-or-die moment could loom within the next few days and weeks.
The renowned crypto analyst @DaanCrypto has pointed this out. Via Twitter, the analyst shared the chart below and explained that LINK could enter Phase C, the “spring”, within the Wyckoff analysis. For this to happen, however, the range must be held:
$LINK Followed the plan. It deviated below its 400-day range and retook it. Wouldn’t expect this to outperform many of the new shiny coins, but the invalidation is clear as day and the risk/reward is solid. It’s do or die here, $LINK Marines.
Dutch analyst Michaël van de Poppe believes the current moment offers a great opportunity. On 17 June, he tweeted, “The best time to accumulate your altcoins and Chainlink is now.” In a recent tweet, he wrote that the thesis is still valid:
It’s undervalued and a synonym for the depression on altcoins. The expansion is, most likely, going to come, but it needs to break through $6 in order to make that happen.
Key Targets For Chainlink Bulls
A look at the 1-day chart using the Fibonacci retracement levels shows that the LINK marines should not celebrate too early. Only if the $5.92 level (23.6% Fibonacci level) can be permanently regained, the bulls can celebrate a first round victory. Before that, there is always the danger that a new drop outside the previous 397-day trading range will happen.
The way to the upper end of the trading range will not be easy at all. At the price level of $6.61, great selling pressure is to be expected, just like at the 200-day EMA, which is currently located at $6.86. Beyond that, $7.20 (50% Fibonacci level) and 8.60 (78.6% Fibonacci level) are crucial.
Huge Catalyst Coming This Summer?
One event the LINK Marines are eagerly awaiting is the release of the Chainlink Cross-Chain Interoperability Protocol (CCIP). The LINK influencer @ChainlinkWoman wrote yesterday, “Chainlink just confirmed CCIP is being released on mainnet this SUMMER, SmartCon2023 is going to be fire.”
The user is referring to Chainlink’s latest development update. In it, it was announced that CCIP, a global standard for cross-chain communication that provides a universal connection between any public and private blockchain, is about to be launched on mainnet.
As final steps, the Chainlink devs plan to complete security audits. In addition, further tests with beta partners are planned. After that comes the “mainnet launch,with early access for users in the testing program prior to the general availability launch.”