Chainlink Price Prediction for February 3

Over the past 24 hours, Chainlink (LINK) has struggled to maintain its price above $22. As a result, the price crashed toward the low of $15.4. However, the LINK price later recovered. Despite these challenges, buyers remain bullish as the price of LINK appears poised for strong gains. Currently, it hovers around the same price levels seen in early January. The fear/greed index has declined, now indicating a fear sentiment at level 39. However, Chainlink’s trading volume has seen a significant surge, surging by 228% in the last 24 hours to $2.18 billion.

In a broader view, LINK’s price has been on a downward trend since mid-December, decreasing from a high of $31 to approximately $18 during mid-January. With the recent decline, it might be hard for the buyers to rebound the price above immediate resistance channels. Over the last 24 hours, its market capitalization has declined by 17.7%, reaching $11.93 billion.

LINK Faces Increased Long Liquidation

Over the weekend, crypto traders responded strongly to Trump announcing new tariffs, including a 25% tax on imports from Canada and Mexico and a 10% tax on Chinese goods. This action led to quick threats of retaliation from these trading partners and unsettled global markets. It also increased long liquidation in the cryptocurrency market.

According to Coinglass, around $16.5 million worth of LINK trades were liquidated. Of this, $15.2 million came from buyers who closed their long positions, while sellers liquidated about $1.32 million worth of positions.

Additionally, interest in trading Chainlink has decreased over the last 24 hours. The open interest, which measures the total number of outstanding derivative contracts, has dropped to $620.9 million, showing a 30.4% decrease in demand.

However, the long/short ratio, which reflects the balance between buyers and sellers, has surged above the ratio 1. This suggests that most traders are now expecting an increase in LINK prices, with 54% of traders predicting an upward correction soon.

Chainlink Price Prediction: Technical Analysis

The LINK price faced a strong decline, resulting in a steep drop toward the low of $15. However, buyers immediately triggered an upward swing in the price chart. Right now, Chainlink’s price is at $18.58, having dropped over 18.2% in the last 24 hours.

The LINK/USDT trading pair is close to $20 and it might struggle to rise above the immediate Fibonacci channels. With the Relative Strength Index (RSI) still in the selling zone at level 31, there’s a chance Chainlink’s price could revisit $18. If the price continues to struggle below the EMA20 trend line, we might see a decline toward the low of $12.  

On the other hand, if the price holds above the 20-period Exponential Moving Average (EMA20) on the 1-hour chart, buyers might send the price above $22. This might result in a strong surge toward the high of $25.

LINK Price Prediction: What to Expect Next?

Short-term: According to BlockchainReporter, LINK price might continue to hover below $20. A surge might retest the $22 level. On the downside, $18 is the range.   

Long-term: According to the current Chainlink price prediction from Coincodex, the price of Chainlink is expected to increase by 14.12% and reach $20.92 by March 5, 2025. Coincodex’s technical indicators suggest that the current sentiment is bearish, while the Fear & Greed Index indicates a level of 44, classified as Fear. Over the past 30 days, Chainlink has experienced 16/30 (53%) green days with 8.92% price volatility. Based on this forecast, it is currently advised against buying Chainlink.

Investment Risks for Chainlink

Investing in LINK price can be risky due to market volatility. Investors should:

• Conduct technical and on-chain analysis.
• Assess their financial situation and risk tolerance.
• Consult with financial advisors if necessary.