Chainlink (LINK) Price Dips, But Bullish Signals Emerge: Ready for the Breakout?

Chainlink (LINK) closed last month on a bearish note, dropping over 7.9 percent in the past two weeks to trade around $12.74 on Thursday during the early Asian session. Despite this decline, the mid-cap altcoin, valued at approximately $12.79 billion with a daily average traded volume of about $300 million, is signaling a likely bullish rebound.

What to expect ahead?

It’s Looking Positive

Furthermore, Chainlink’s price has established a solid support level above $12.5 in the past four months. 

Additionally, Chainlink’s monthly Relative Strength Index (RSI) has already rebounded off the 50 percent level. According to a popular crypto analyst Ali Martinez, the TD Sequential indicator has flashed a buy signal, thus anticipating a tangible rebound ahead.

Chainlink’s Role in Web3 Adoption

In recent years, Chainlink has become essential for mainstream Web3 adoption. Backed by reputable investors and smart contract developers, it has led in development activity on the Ethereum network over the past 30 days.

As a reliable source of crypto oracle data, more spot Ether and Bitcoin ETFs have integrated with Chainlink to ensure maximum transparency. For example, 21Shares recently integrated with Chainlink Proof of Reserve (PoR) to enhance reserves transparency for the 21Shares Core Ethereum ETF (CETH).

Chainlink has been crucial in helping institutional investors tokenize real-world assets like gold, bonds, and real estate. Additionally, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) offers a secure and scalable solution for interoperability in the Web3 industry.

LINK Technical Analysis

The Chainlink price has gained significant bullish sentiment in recent months, indicating a potential breakout soon. From a technical perspective, Chainlink has completed the second phase of the Elliott Wave principle, suggesting the second bullish cycle is approaching.

If LINK’s price successfully rebounds, the target range is between $18.80 and $22.80, aligning with the 1.618 and 2.618 daily Fibonacci extensions. Conversely, if Chainlink fails to recover the daily 50 and 200 Moving Averages (MA) as support levels, its price could fall back to around $10.

Investors are eagerly anticipating Chainlink’s next move as the cryptocurrency market remains volatile. Are you bullish?