Analysis of Chainlink (LINK) Price Predictions Amid Fed's Rate Predictions Impact on Altcoin Market
In the recent 24-hour period, significant developments unfolded in the cryptocurrency sphere. The Federal Reserve's revision of the anticipated interest rates for the upcoming three years on the eve of the Fed meeting has had substantial repercussions. The average forecast by members for 2024 hinted at fewer rate reductions, affirming that the battle against inflation is far from over. As a result, altcoins experienced a decline. This scenario raises questions about the future trajectory of Chainlink (LINK).
Chainlink (LINK)
The altcoin market has exhibited a notable decline in the wake of the Federal Reserve's potential for a solitary rate cut this year, impacting risk assets adversely. Although yesterday's Consumer Price Index (CPI) and today's Producer Price Index (PPI) data surpassed expectations, investor sentiment remained tepid. LINK Coin witnessed an approximate 11% drop in the past week, plummeting to around $15.5.
Despite the downward trend in price, prospects for an upward movement remain plausible, as indicated by the NVT and MVRV ratios, which still suggest the potential for a rebound. Both metrics are crucial in evaluating whether the prevailing price is at a justifiable level.
Historical analysis demonstrates that LINK Coin prices surged following days when these pivotal indicators signaled buying opportunities. NVT declined to 93.04, and the 30-day MVRV ratio stands at -9.02%. The chart below illustrates how LINK Coin's price surged when the MVRV ratio fluctuated between -6% and -21%. Notably, substantial price increases occurred in May and April in tandem with this signal.
LINK Coin Price Prediction
In a favorable scenario, an upturn in LINK Coin's price, currently hovering between $15.4 and $15.5, could propel it to $17.7. Beyond this threshold, $18.57 emerges as a critical level for bullish momentum. The resistance line of the parallel channel monitored over recent months corresponds to the $17.7 level. A breach above this point led to a test of $22.8. Should this region transition into support, a comparable peak may manifest once more.
Conversely, sustained selling pressure could drive a retreat to the parallel channel's support subsequent to the $13 base support, potentially resulting in a new low at $12.09. If the altcoin, which initiated an upward trend marked by elongated candlesticks commencing on October 21, 2023, breaches its final support, the likelihood of single-digit prices looms. In essence, the definitive status of the uptrend remains uncertain, with Bitcoin's performance acting as a decisive factor.
