Invest Or Not: Chainlink Price Can Hit A Rebound In The Coming Month(s)

In December 2024, Chainlink’s price reached a multi-year high, peaking at $30.78. Since then, its price has been on a downtrend, putting investors on edge. At the time of writing, on February 22nd, Chainlink’s price has fallen by 43% and is hovering around $17.4. However, broader market analysis thinks this sharp decline is not concerning and is part of the current slump that has gripped the market. Some analysts claim that the token might bounce back in the later part of this year. Here is why: 

Is A Rebound Coming? 

According to data presented by LINK, holders have not released the coin abruptly in the market. Subsequently, CoinGlass’s data suggests that the exchanges’ balances are falling. Data shows that the balance has fallen to just 138.8 million LINK coins. This is the lowest since last September, when the balance fell to 160 million. Which subsequently turned into a major peak.  

The gradual decline of the centralized exchange balances shows investors are optimistic about the coin. As a result, they hold the coin in the hopes of maximizing profit.  Sources suggest this is primarily because most investors expect the US Securities and Exchange Commission or SEC to approve spot LINK ETF. This approval will mean a lot as it can skyrocket the token’s price.  

Another factor that could cause a rebound is how LINK has positioned itself in the market. At the time of writing, LINK is one of the biggest oracle networks. This network has secured a total value of $35 billion. LINK is much bigger than Oracle networks like RedStone, Pyth, and Chronicle. Furthermore, LINK is also a pioneer in the real-world asset tokenization industry, using its cross-chain interoperability protocol (CCIP). Therefore, these factors could skyrocket the token’s price in the coming month(s).  

Pricing Analysis 

LINK is currently showing strong technicals. The weekly chart shows that the token is hovering slightly over the 100-week Exponential Moving Average despite crashing by 43%. Analysts claim that the initial rebound target of the token would be $30, followed by a retracement point of $35. Then again, the market is volatile, and pricing can go either way, so keep your hopes tempered.