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The final months of a market cycle are usually characterized by exhilarating runs by various assets in the altcoin market — a period famously dubbed the “altcoin season.” Unfortunately, while the market cycle seems to have peaked, the story has been the opposite for this category of cryptocurrencies.
Specifically, the Chainlink price has declined by more than 50% in the last three months, underscoring the dwindling climate of the crypto market. However, the future might not be all bleak, as the latest price outlook suggests a promising future for the LINK token.
Is Chainlink Price Gearing For A 100% Move?
In a recent post on the X platform, a crypto analyst with the pseudonym Satoshi Flipper shared an exciting analysis of the Chainlink price. Referencing the current layout of its daily price chart, the crypto pundit projected LINK to go as high as $31 over the next few weeks.
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This bullish analysis is based on the appearance of the falling wedge pattern on the Chainlink price chart. The falling wedge pattern is a technical analysis formation characterized by two descending and converging trendlines; an upper line connecting the lower highs and the lower line connecting the lower lows.
Wedge formations — which could be rising or falling — are considered continuation or reversal patterns, depending on whether the price breaks down or breaks out. In the falling wedge, if the price breaks above the upper boundary as it narrows into the descending lines, a trend reversal is identified.
This scenario appears to be playing out on the daily Chainlink price chart, as the altcoin continues to persist in the current downtrend. However, a break above the upper trendline would indicate a shift to an upward trend.
As shown in the chart above, the price of LINK seems to be testing the upper boundary line already. Satoshi Flipper expects the altcoin to surge to as high as $31 if a successful close occurs outside the falling wedge.
As of this writing, the value of LINK is hovering around the $14 mark, reflecting an over 2% leap in the past 24 hours. A Chainlink price move to $31 would represent a more than 100% surge from the current point.
640,000 LINK Tokens Flow Out Of Centralized Exchanges
According to crypto pundit Ali Martinez, most LINK investors have been moving their tokens off centralized exchanges. Recent data from Santiment shows that more than 640,000 LINK have made their way off crypto exchanges in the past 24 hours.
This magnitude of exchange outflow supports the current bullish prognosis for Chainlink price, as it implies that the token supply on exchanges (which offer trading services) contracts. With fewer tokens available for sale in the open market, the altcoin’s price would face less selling pressure.
However, it is worth mentioning that this significant exchange outflow could be connected to Chainlink’s quarterly token unlock, which saw the release of 19 million LINK tokens on Friday, March 15.
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Featured image from iStock, chart from TradingView
