Can Chainlink (LINK) price reverse and reach $47?

The Chainlink (LINK) price chart from the last week of December 2024 showed the strategic play of traders, with a clear search for liquidity visible.

The heatmap showed that as the price fell, there was a significant spike in liquidity around the $22 mark, a critical level where a large number of sell orders were initiated, culminating in a short-term decline in price.

This pattern featured a sharp drop in price from around $26 to below $22 before a modest recovery.

This decline and subsequent consolidation indicated a targeted liquidity grab below current price levels, supporting the prediction of a correction.

Zones around $25.07 to $25.10 also witnessed heavy trading activity, suggesting that these areas are key for future price movements.

The analysis pointed to these spikes in liquidity, highlighting tactical moves by traders to take advantage of rapid price changes.

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This activity set the stage for potential future volatility, as traders could continue to exploit these liquidity-rich zones, prompting more price corrections.

This strategic approach to trading Chainlink indicated the participants’ astute awareness of market dynamics, aligning with broader market behavior.

Short-term vs long-term risk

LINK’s indicator of price and short-term risk over the past five years has shown significant fluctuations, reflecting the dynamics of the underlying market.

Initially, short-term risk showed high volatility, with spikes and dips closely correlated with LINK’s price action.

This volatility was particularly pronounced during periods of sharp price growth or decline, indicating a reactive short-term trading environment.

As the price of Chainlink stabilized towards the middle of the timeline, the short-term risk was consistently below neutral. This indicated a phase of lower trading risk and possibly healthier market sentiment.

This pattern continued with occasional peaks, which often preceded or coincided with price corrections, as seen from late 2023 to 2024.

Long-term risk remained elevated throughout the period, suggesting that current market conditions appeared to have stabilized, but fundamental risks remained.

This was evident as the LINK occasionally took time to cool down after significant runs. He supported the idea of ​​a necessary correction phase to maintain the overall health of the market.

The most recent period observed indicated another potential reset, with short-term risk re-aligning closely below the neutral line. This was setting the stage for another possible price adjustment as LINK looked for a new stable floor to begin its next climb.

This alignment indicates a cyclical pattern of risk and recovery.

Chainlink Price Action and Forecast

Chainlink price analysis indicated a significant bullish momentum peaking at $30.

This progress was supported by a significant increase in trading volume, underscoring strong customer interest.

Historically, LINK has shown a consistent rise along a steeply sloping trendline, starting lower and consistently aiming higher.

The pattern suggested a continuation, leading to expected targets of $47,154 and a potential extension to $88, should the initial target be exceeded.

This could represent an impressive increase of +111% from current levels. He highlighted the potential for significant gains if LINK maintains its upward trajectory.

The surge in volume that followed the recent price spike further confirmed the strength of the potential bull trend.

Strategic positioning at $30 along with high transaction volumes. This implied that LINK could establish a strong foundation to support further progress.

If this bullish pattern holds, it could lead to a successful push to $47,154, and beyond, as market conditions are favorable for the Chainlink price.