Chainlink Price Prediction for February 4

Over the past 24 hours, the price of Chainlink (LINK) has been trying to stay above $22 but faced some difficulties. Nevertheless, buyers remain hopeful as the price of LINK still looks set correct upward following the downtrend. It’s currently around the same price levels it was in early January. The fear/greed index has decreased, now showing a neutral sentiment at level 45. Meanwhile, Chainlink’s trading volume has dropped by 17.2% in the last 24 hours, reaching $1.78 billion.

Looking at the longer trend, LINK’s price has been declining since mid-December, dropping from a high of $31 to about $15 on 3 February. Despite the fall, there is still significant buying interest and market activity, keeping its price within a potential buying range. In the last 24 hours, its market capitalization has also grown by 9%, hitting $12.78 billion.

LINK’s Liquidation Nears $3.5 Million

The cryptocurrency market is experiencing a bullish rally following the significant crash. Buyers found an opportunity to accumulate more around the recent dip, resulting in a strong rebound in the LINK price chart.

In the past 24 hours, Chainlink (LINK) has witnessed significant trading activity. According to Coinglass, around $3.44 million worth of LINK trades were liquidated, with $2.6 million of that came from buyers closing their long positions.

Amidst this price volatility, interest in trading Chainlink has risen. The open interest, representing the total number of unsettled derivative contracts, has surged to $628 million, marking an increase of over 3.58% in the last 24 hours.

However, the long/short ratio, which indicates the balance between buyers and sellers, has fallen to 1.2517, suggesting that most traders are now anticipating a surge in LINK prices. Currently, 55.6% of traders are expecting the price to decline soon.

Chainlink Price Prediction: Technical Analysis

The price of Chainlink is currently maintaining a position around the resistance line on its chart, indicating strong buyer confidence. Although it’s attempting to stay above $22, sellers are actively resisting any significant price increases. Right now, Chainlink’s price is at $20.3, having climbed over 3.5% in the last 24 hours.

The LINK/USDT trading pair is hovering above $18 and could potentially rise above the immediate Fibonacci channels. With the Relative Strength Index (RSI) heading toward the buying zone, there’s a chance Chainlink’s price could rise above $22. If it manages to hold above $22, this could be advantageous for buyers, possibly driving the price as high as $25-$27.

On the other hand, if the price holds below the 20-period Exponential Moving Average (EMA20) on the 1-hour chart, sellers might push it down towards the $18 range.

LINK Price Prediction: What to Expect Next?

Short-term: According to BlockchainReporter, LINK price might continue to hover below $22. If the price moves above that level, we might see a trade around $25. On the downside, $18 is the range.   

Long-term: According to the Chainlink price prediction on Coincodex, the price of Chainlink is expected to increase by 7.70%, reaching $21.69 by March 6, 2025. Technical indicators suggest a bearish current sentiment, while the Fear & Greed Index indicates a level of 72, classified as Greed. Over the past 30 days, Chainlink has experienced 16/30 (53%) green days with a price volatility of 9.40%. Based on this forecast, it is currently not advisable to purchase 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.