Chainlink (LINK) has emerged as one of the top cryptocurrencies in the last week following an impressive market performance which saw the token gain by 46.49% in the past seven days.
Even amidst whale movements, which suggest that investors are taking profit, LINK has managed to maintain its bullish momentum, gaining by 6.10% in the last day to above the $11 mark.
However, despite the positive sentiment that has currently overwhelmed the LINK market, some analysts believe the token may be due for a major retracement.
Related Reading: Chainlink (LINK) Surge Far From Done As Crypto Analyst Predicts Rise To $15
LINK To Fall Below $10: Is The Bullish Run Over?
In a post on X on Friday, crypto analyst Altcoin Sherpa shared a prediction that LINK may soon experience a price dip, falling as low as $9.50.
However, Altcoin Sherpa notes that this potential price loss may not spell the end of LINK’s bullish phase. In fact, the analyst describes the token’s price coming down as “healthy.”
$LINK: Be patient marines, coming down a bit is healthy. $9.50 would be great. #LINK pic.twitter.com/eJBdkFar4o
— Altcoin Sherpa (@AltcoinSherpa) October 27, 2023
According to Sherpa’s prediction, LINK’s slide below $10 could simply be a price recorrection before the token resumes its upward trajectory. If this forecast proves true, many traders could view this $9.50 region as a great entry zone.
Interestingly, Cryptonary, another analyst on X, has recently shared a similar price prediction.
In a post on Thursday, Cryptonary called for much caution in the LINK market, stating the crypto asset may not sustain its current high price levels for long.
To back up this forecast, the analyst states the Relative Strength Index (RSI) shows that Chainlink is currently in the overbought zone, which indicates a price pullback lies on the horizon.
Although many traders have opened long positions on LINK as indicated by the market’s positive funding rates, Cryptonary has advised investors against “joining the crowd”
LINK surged 60% in 6 days: What’s next?
LINK is overbought, but can it sustain at these higher levels here? In our experience, moves that go straight up aren’t usually sustainable.
But let’s find out what the charts say!
LINK has been able to hold up at… pic.twitter.com/nVvpYPKp1t
— Cryptonary (@cryptonary) October 26, 2023
Similar to Altcoin Sherpa, the analyst predicts LINK’s price to fall to $9.67 for a short-term retracement. However, with strong selling pressure, Cryptonary states that LINK could trade as low as $8.
At the time of writing, LINK trades around $11.54 with a 0.25% gain on the last day. Meanwhile, the token’s trading volume is up by 8.01% and valued at $824.92 million.
Related Reading: Chainlink MVRV Enters Bearish Zone As LINK Breaks $10, Correction Soon?
Chainlink Records Partnership Streak
In other news, Chainlink recently shared with the crypto community its streak of collaborations with major traditional brands in promoting the adoption of blockchain technology.
#Chainlink is collaborating with key players across the global economy:
1. Swift—Standard messaging network for 11K+ banks
2. DTCC—World’s largest securities settlement system, processing $2+ quadrillion annually
3. ANZ—Leading Australian bank with $1T+ in AUM
— Chainlink (@chainlink) October 27, 2023
In a thread posted on X on Friday, the blockchain highlighted its partnership with the Swift payment company aimed at facilitating the seamless transfer of tokenized assets across multiple chains using Chainlink’s Cross Chain Interoperability Protocol (CCIP).
In addition to Swift, Chainlink also discussed its partnership with the Depository Trust and Clearing Corporation, the Australia and New Zealand Banking Group Limited, and Vodafone Digital Asset Breaker (DAB).
LINK trading at $11.569 on the daily chart | Source: LINKUSDT chart on Tradingview.com
Featured image from iStock, chart from Tradingview