Chainlink price seems ready for a reversal of its two-week downswing as it attempts to create a higher high. This outlook is also supported by on-chain metrics, which suggest the possibility of accumulation at the current levels for LINK. Chainlink price has dropped roughly 41% over the past 18 days, creating a swing low at $22.65, which could potentially be the reversal point. From this pivot point, LINK has rallied 14% to where it currently trades - $25.93. Investors can expect Chainlink price to continue its upswing toward the 50% retracement level at $30.51. This run-up will represent a 17% ascent and in some cases, the uptrend could extend to the 62% Fibonacci retracement level at $32.40. This move, however, would indicate a 30% upswing for LINK. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The technicals are clearly indicating a bullish outlook for the oracle token and the Market Value to Realized Value (MVRV) model also suggests a similar outcome as it hovers around -11.5%.

This on-chain metric is used to determine the average profit/loss of investors that purchased LINK over the past month. A negative value indicates that the short-term investors are in the red and this is where long-term holders tend to accumulate.

Therefore, market participants can expect Chainlink price to see a bullish reaction and trigger an upswing.

Regardless of the bullish outlook from both technical and on-chain perspectives, there is a chance Chainlink price might head below the range low at $22.63 to collect liquidity. This move will invalidate the bullish thesis if LINK produces a lower low below $21.35.

In such a scenario, Chainlink price could head lower to retest an immediate support level at $20.79.

Chainlink Taking Support of $25.0

Dec 03 2021