The cryptocurrency market has been unforgiving to Chainlink (LINK) this month, with its price dropping over 5% today. Despite holding a spot among the top 15 cryptos by market cap (hovering around $8.13 billion), LINK has struggled to recapture its all-time high of $52.88.
However, a glimmer of hope emerged from prominent crypto analyst Michael van de Poppe. In a recent tweet, van de Poppe pointed towards a potential 150% rally for Chainlink in the latter half of 2024, citing the formation of a bullish weekly candle.
Historically, bullish patterns?
Van de Poppe noted a recurring trend where May or June tends to mark the bottom point for LINK‘s price cycle. This cyclical pattern suggests an upcoming turning point, potentially leading to a bullish trend in the coming months. He bolstered his prediction by highlighting a similar price pattern observed in previous years, which ultimately resulted in a 150% surge during the second half of those respective years.
“[$LINK] makes a very decent weekly candle on the cycle low,” van de Poppe tweeted. “[…] Again, the bottom will likely be created in May or June. A similar price pattern occurred in previous years, resulting in a 150% rally in the year’s second half. I’m expecting the same.”
Unlocking Events and Market Reaction
While van de Poppe’s analysis offers a positive outlook, it’s important to acknowledge a recent event that may have contributed to the price dip. The unlocking of 21 million LINK tokens (valued at roughly $295 million) from non-circulating supply contracts increased the overall circulating supply of LINK. This influx can sometimes trigger investor speculation and temporary price fluctuations.
At the time of writing, LINK is trading at $13.26, reflecting a 5% decrease. However, trading volume has risen by 22% to $320.884 million. Interestingly, Chainlink’s Open Interest (OI) also witnessed a rise of 1.74% to $179.02 million, indicating continued investor activity despite the price dip.
While the immediate future remains uncertain, van de Poppe’s analysis, coupled with LINK’s historical cyclical trends, offers a reason for optimism among LINK holders. Only time will tell if LINK can recapture its past glory and embark on a 150% rally in the coming months.
