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Chainlink plunges from 3-month high as LINK price aims for another 50% correction

Chainlink (LINK) has returned to mimic the broader crypto market’s downtrend as its price fell along with topcoins Bitcoin (BTC) and Ether (ETH) on Nov. 8.

LINK plummeted by 10% to reach $8. BTC and ETH fell about 6.5% and 9% respectively. This contrasts with the trend witnessed on Nov. 7, when LINK climbed 14% to a three-month high of $9.25, while BTC and ETH fell 1.5% and 0.5%, respectively. did.

LINK/USD 2-hour chart.Source: Trading View

Overall, Chainlink has outperformed both Bitcoin and Ethereum over the past week timeframe.

What Makes Chain Links Stronger

LINK’s price has recovered nearly 75% after bottoming out at $5.29 in May. Notably, the recovery rally of Chainlink tokens coincides with the continued increase in supply held by that whale (an entity holding at least 1,000 LINK).

According to Santiment data, the share of Chainlink supply held by addresses with a balance of 1,000 LINK to 1 million LINK rose from 18.2% in May to nearly 23% in November. This indicates that wealthy investors may have been the major players behind his LINK price recovery.

LINK supply distribution between addresses holding 1K-1M tokens.Source: Santimento

Interestingly, in the days leading up to the launch of “Chainlink Staking,” the LINK accumulation trend has increased.

Chainlink co-founder Sergey Nazarov announced at SmartCon 2022 that the long-awaited LINK staking rewards feature will be unveiled in December. Additionally, the project’s official website confirms that an “eligible community member” will be able to stake her LINK into that pool in his December.

The LINK staking service will be launched to the public in the same month, with an initial annual yield set at 5%.at the event began to speculate Increased demand for Chainlink tokens by the end of 2022.

LINK will benefit in the short term from the euphoria surrounding its Chainlink staking feature, given that other coins fell in tandem in response to rumors of the bankruptcy of crypto hedge fund Alameda Research. seems to be

25% compensation setting is still valid

From a technical standpoint, LINK’s recovery rally since May has been within the ascending triangle.

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An ascending triangle is a continuation pattern. That is, it usually sends the price in the direction of the previous trend after a consolidation period. LINK was trending downward before forming an ascending triangle.

According to veteran investor Thomas Burkowski’s observation of the upward triangle, there is a 44% chance that the token will continue its downtrend and reach its profit target. The profit target is measured after adding the maximum triangle height to the breakdown points as shown below.

A 3-day price chart for LINK/USD featuring an ascending triangle breakdown setting.Source: Trading View

This will bring LINK down to about $4.15 by December 2022, about 50% below its current price.

Conversely, Mr. Pentosi, a flea market analyst, anticipate Given that the token is above the same support that helped drive its price to a record high in May 2021, LINK will hit $12 in the same period.

LINK/USDT 3-day price chart.Source: TradingView/Pentosi

“People are silent now, but I don’t think that will be the case in three to four weeks,” Pentosi said.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.