Chainlink Price Prediction for January 21

Over the past day, the price of Chainlink (LINK) has struggled to stay above $26 and has been falling steadily, now sitting below $24. The fear/greed index has also fallen, showing a neutral market sentiment at 59. Meanwhile, Chainlink’s trading volume has increased by 27% in the last day, reaching $2.16 billion.

Looking at the longer trend, LINK’s price has been on the decline since mid-December, falling from a high of $31 to about $18 last week. Despite this drop, there’s still a lot of buying interest and market activity, suggesting that its price is in a potential buying range. In the last 24 hours, its market capitalization has decreased by 9.5%, landing at $15.4 billion.

LINK Faced Over $3 Million in Total Liquidations

Since Trump didn’t talk about cryptocurrency in his inauguration speech, the market saw a significant drop over the past 24 hours. This led to $100 million being liquidated just an hour after he finished speaking. The drop heavily affected the alternative cryptocurrency market, including the price of LINK.

In the last 24 hours, Chainlink (LINK) has experienced significant trading activity. According to Coinglass, around $3.12 million worth of LINK trades were liquidated, with $2.7 million of these coming from buyers closing their long positions.

Following the price drop, there has been a decrease in trading interest for Chainlink. The open interest, which measures all the open trading positions in derivatives, has fallen to $1.03 billion. Additionally, the long/short ratio, which shows the balance between buyers and sellers, has dipped below 1. This indicates that most traders are now expecting the price of LINK to fall, with 51.7% of traders predicting a price drop soon.

Chainlink Price Prediction: Technical Analysis

The price of Chainlink is aiming for a drop below the declining support line on the price chart. Sellers are dominating the price chart and aiming for a hold below the $23 level. Right now, Chainlink’s price is at $24.1, having dropped over 8.1% in the last 24 hours.

The LINK/USDT trading pair is close to $23 and could drop below the 23.6% Fib channel. With the Relative Strength Index (RSI) dropping below the midline at level 49, there’s a chance Chainlink’s price could consolidate around $20. If it manages to hold above $24, this could be advantageous for buyers, possibly driving the price as high as $27.

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

LINK Price Prediction: What to Expect Next?

Short-term: According to BlockchainReporter, LINK price might continue to hover around $22-$24. If the price moves above that level, we might see a trade around $27. On the downside, $20 is the range.   

Long-term: According to Coincodex’s Chainlink price prediction, the price of Chainlink is expected to increase by 49.42% and hit $36.06 by February 20, 2025. Coincodex’s technical indicators suggest that the current market sentiment is bullish, with the Fear & Greed Index indicating 76, showing a state of extreme greed. Over the past 30 days, Chainlink has experienced 17 out of 30 green days, with a price volatility of 7.69%. Based on this forecast, Coincodex suggests that now is a good time to buy 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.