Chainlink (LINK) has been facing significant bearish pressure in the crypto market, despite a widespread weekly gain. The altcoin has been on a downward trend since hitting a local price peak of $29.28 in December, losing over 56% of its value since then. However, top crypto analyst Ali Martinez believes that LINK could soon see a short-term price gain.
Martinez’s positive outlook is based on a crucial ascending trendline that has been acting as price support for LINK since mid-2023. This trendline has been instrumental in forming higher lows and higher highs for the altcoin. According to Martinez’s trading chart, Chainlink is approaching a retest with the trendline near the 0.5 Fibonacci retracement level at $12.00. If bulls can generate enough demand at this level, it could trigger a bullish reversal, potentially driving LINK’s price to $19, the next resistance zone. In a best-case scenario, the altcoin could even reach $30, representing a 147% price increase from current levels. However, failure to hold above $12.00 could lead to a price decline to $10.00, with the possibility of dropping as low as $5.00.
In a significant development for Chainlink, PayPal Holdings has added the altcoin to its list of supported cryptocurrencies. Users can now buy, hold, send, and receive Chainlink and Solana (SOL) on their PayPal and Venmo wallets. This move is expected to increase demand for LINK and drive mainstream adoption of the token. In addition to Chainlink and Solana, PayPal also offers access to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Despite the positive news, LINK is currently trading at $12.91, reflecting a 0.62% decline in the past 24 hours. The token has seen losses of 5.03% and 21.81% in the last seven and thirty days, respectively. Investor sentiment in the LINK market remains bearish, with a Fear & Greed Index of 26 indicating near-extreme fear. However, analysts at Coincodex predict a price rebound similar to Martinez’s forecast, with a projected price of $15.32 in five days and $17.46 in a month.
Overall, while Chainlink has been facing bearish pressure in the crypto market, there is optimism for a potential price recovery based on key technical indicators and recent developments in the industry. Investors will be closely watching to see if LINK can overcome its current challenges and regain bullish momentum in the coming weeks.